October 22, 2021: -Bitcoin notched a fresh all-time high Wednesday as investors cheered the successful launch of the first U.S. bitcoin futures exchange-traded fund.
According to Coin Metrics, the world’s largest cryptocurrency climbed 3.9% to $66,398.25 by 4 p.m. ET. The coin at its high passed the $66,900 level on Wednesday, which tops a previous intraday record of $64,899 set in April.
“The key here is whether we can establish support of more than $65,000,” said Jesse Proudman, CEO of crypto Robo-advisor Makara. “If we can, the classic Q4 crypto rallies we saw in the years could take bitcoin towards the loftier price predictions we’ve seen for the past several months. If sell pressure takes over, our next leg up could take a while to materialize.”
Billionaire investor Paul Tudor Jones known as crypto is his preferred inflation hedge over gold.
“Bitcoin would be a great hedge. Crypto would be a great hedge,” Jones told CNBC. “There’s a plan in place for crypto, and it’s winning the race against gold at the moment; I would think that would be a perfect inflation hedge, and it would be my preferred one for gold at the moment.”
Ethereum also rose 7.4% to cross back over the $4,000 level. The world’s second-largest cryptocurrency traded at $4,104.61, which approaches its all-time intraday high of 4,380 in May.
The ProShares Bitcoin Strategy ETF, tracking bitcoin futures contracts pegged to the future price of the cryptocurrency, jumped nearly 5% on its first day of trading Tuesday.
Not everyone in the crypto market was impressed. Several bitcoin investors want an ETF that tracks spot prices instead of the futures.
Novice investors have had to get to grips with terms like “contango,” where the futures price is more than its spot price, and “backwardation,” which is the opposite.
“More products are great, but I cannot see the point of investing in futures-based bitcoin ETFs when you buy the asset in the spot market,” said Jodie Gunzberg, the managing director of CoinDesk Indexes.
“It’s not like oil or cattle that is impossible to hold physically for most investors, and it’s more like gold that can be easily held. Except the cost is more such as oil,” she added.
Still, it’s a landmark for the nascent crypto industry, which has long been pushing for greater acceptance of bitcoin and other digital currencies on Wall Street.