Bitcoin rose as much as 3.8% to a record high of $66,560.73 on Wednesday after a strong debut for the first exchange-traded fund tracking the asset.- The ProShares Bitcoin Strategy ETF saw more than 24 million shares change hands when it launched on Tuesday.
- This has opened the road for bitcoin to hit $80,000, Jeffrey Halley, senior market analyst at OANDA said.
Bitcoin climbed as much as 3.8% to a record high of $66,560.73 on Wednesday, a day after the first exchange-traded fund tracking the cryptocurrency had the second-biggest trading debut of all time.
ProShares' Bitcoin Strategy ETF, which started trading on Tuesday, gives investors exposure to bitcoin via futures contracts rather than owning it outright. It is the first bitcoin futures ETF to gain regulatory approval in the US. It saw more than 24 million shares trade hands at its debut, according to Bloomberg data.
"The ETF will be a big factor for driving the price higher, as it allows a new wave of money to enter the market," Marcus Sotiriou, Sales Trader at GlobalBlock told Insider.
Bitcoin has gained around 50% in the space of a month, driven by the growing chances of the approval of an ETF that would open the market to much bigger investors. That compares with a rise of around 4% in the S&P 500.
The blockbuster launch has given most market-watchers conviction that bitcoin is set to climb further.
"Bitcoin will be trading higher than the current price by the end of the year and could reach over $100,000, but this is a very psychological barrier that may be difficult to overcome," Sotiriou said.
Bitcoin could even reach $168,000 by the end of the year because of the new ETF, Fundstrat said in a note on Monday.
"A close above $65,000 opens the road to $80,000,"Jeffrey Halley, senior market analyst from OANDA said in a note to clients Wednesday.
The SEC may approve two more bitcoin futures this month: the VanEck Bitcoin Strategy ETF, and the Valkyrie Bitcoin Strategy ETF. ETF provider and asset manager Invesco was originally on that list, but opted out this week.