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THE PRICE of bitcoin is set to surge to an all-time high after the world’s first exchange-traded fund (ETF) was announced on Friday.
Bitcoin now stands at $62,000 dollars, just $2000 away from the $64,0000 record it hit in April.
The overall crypto market hit $2.5trillion on Monday evening and analysts predict that bitcoin and other cryptocurrencies will beat their previous records in the coming months.
The ProShares Bitcoin Futures ETF, which was approved by the ETF on Friday, will begin trading on the New York stock exchange on Tuesday.
This will make the most widely traded cryptocurrency available to most investors who have a brokerage account.
According to the digital assets management company CoinShares, the ETF approval: “Could prompt further significant inflows in the coming weeks as U.S. investors begin to add positions.”
Prominent bitcoin analyst PlanB predicts the cryptocurrency will reach six figures within the next two months.
Repackaging cryptocurrencies through ETF
won’t automatically reduce risks
Repackaging cryptocurrencies through an ETF won’t automatically reduce the risks involved, said Andrey Dobrynin, Co-Founder and Managing Director of ETF specialist investment platform InvestEngine.
“As with all investments – investors should invest at a level or knowledge and risk that they are comfortable with,” he told the Express.
“Whilst ETFs traditionally provide excellent diversification and convenient access to markets – there are always things to consider such as the track record of product providers, replication methods and, in this case, the performance of the underlying futures contracts.
“Without forgetting the fact that Bitcoin remains largely an unregulated asset class which is still establishing itself on its use.”