Bitcoin is making waves in the Crypto world as it is so close to breaking its all-time high of $64,889. This follows a remarkable recovery that saw it crash below $30,000 in July. It is currently trading at $64,646 and is expected to keep rising.
The overall crypto market is also approaching an ATH, reaching above $2.5 trillion yesterday morning and continuing to climb today. Several leading cryptocurrencies have also seen big gains, most notably Ethereum (ether), Binance Coin, and Polkadot (DOT).
Analysts speculate the start of a bull run.
Many analysts are speculating that the latest rally is the beginning of a major bull run. This run may see bitcoin and other cryptocurrencies blast past their previous records in the final months of 2021.
This latest surge coincides with the much anticipated first Bitcoin ETF debuting on the New York Stock Exchange this week. The ProShares Bitcoin Strategy ETF began trading at $40 a share under the ticker symbol “BITO” and finished the day up 5%. The ProShares fund is the first of what experts expect to be several ETFs that track bitcoin futures to debut on Wall Street.
What is an ETF?
An ETF is an investment vehicle that tracks the performance of a particular asset or group of assets. ETFs allow investors to diversify their investments without actually owning the assets themselves. A bitcoin ETF is one that mimics the price of the most popular digital currency in the world. This allows investors to buy into the ETF without going through the complicated process of trading bitcoin itself. Holders of the ETF won’t be directly invested in bitcoin itself, so they will not have to worry about the complex storage and security procedures required of cryptocurrency investors.
What does a Bitcoin surge mean for the future of Crypto investing?
With the possibility of other Cryptocurrencies jumping on the ETF bandwagon, this could potentially cause a spike in the prices of those currencies as we have seen with Bitcoin, giving the potential for those currencies to beat their ATH. But, as with investing in all Cryptocurrencies, investors should proceed with caution, and only invest what they are comfortable with investing.