Bitcoin jumps to new record above $65,000 after landmark U.S. ETF launch
Bitcoin hit a new all-time high Wednesday, as investors celebrated the launch of the first U.S. bitcoin-based futures exchange-traded fund.
The world’s biggest cryptocurrency rose more than 2% to $65,607.92. This surpasses the previous record of $64,899, set in mid April.
A legendary trader made bullish comments that boosted sentiment. Bitcoin investor Paul Tudor Jones referred to crypto as his preferred inflation hedge instead of gold.
“Bitcoin would make a great hedge.” Jones stated that crypto would make a great hedge on Wednesday’s CNBC’s “SquawkBox”. “There is a plan for crypto, and it clearly leads the race against gold at this time. That would be a very good inflation hedge, I think. I would prefer it to gold right now.
The ProShares Bitcoin Strategy, which tracks futures contracts for bitcoin, speculating about the price of the cryptocurrency in the future, jumped nearly 5% its first trading day Tuesday.
The crypto market is not for everyone. Many bitcoin investors are looking for an ETF that tracks spot price rather than futures.
Novice investors need to be familiar with terms such as ‘contango’, where the commodity’s futures price is higher than its spot, and ‘backwardation’, which is basically the opposite.
Jodie Gunzberg (Managing Director of CoinDesk Indexes) stated that while more products are great, she doesn’t see the point in investing in futures-based Bitcoin ETFs when it’s possible to buy the asset in the spot marketplace.
It’s not impossible to hold for most investors. It is more like gold, which can be held easily. It’s more expensive than oil, but it is still worth it.
It’s still a significant milestone for the emerging crypto industry, which has been long pushing for greater acceptance for bitcoin and other digital currencies on Wall Street.