Bitcoin Hits New Record Over $65,000 After USETF’s Unprecedented Launch

Texas News Today

A visual representation of bitcoin.

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Bitcoin hit record highs on Wednesday as investors helped launch the first US bitcoin futures exchange-traded fund.

The world’s largest cryptocurrency is up nearly 3% to $66,024.99 as of 10:10 EST, surpassing the all-time record high of $64,899 in mid-April.

Bullish comments by veteran traders also fueled the sentiments. Billionaire investor Paul Tudor Jones called the cryptocurrency a favorite inflation hedge over gold.

“Bitcoin would be a great hedge. Cryptography would be a great hedge,” Jones told CNBC’s “Squawk Box” on Wednesday. “We have a crypto plan and we are clearly overtaking gold at this point… I think that would also be a very good inflation hedge. I prefer it over gold at the moment.”

Ethereum also gained over 4% above the $4,000 level. The world’s second largest cryptocurrency was trading at $4,005.91, having touched a May day high of 4,380.

The ProShares Bitcoin Strategy ETF, which tracks bitcoin futures contracts to predict the future prices of the cryptocurrency, rose nearly 5% on its first day of trading on Tuesday.

Not everyone in the crypto market has been impressed. Some bitcoin investors want ETFs that track spot prices instead of futures.

Novice investors need to understand terms such as “contango”, where commodity futures prices exceed spot prices, and “backwardation”, which is essentially the opposite.

CoinDesk Index Managing Director Jody Gunzberg said:

“For most investors, it’s not like oil or cows that are physically impossible. It’s like gold that’s easy to hold. Except the cost is like oil. Castles.”

Nevertheless, it is a milestone in the early crypto industry that has long fueled greater acceptance of bitcoin and other digital currencies on Wall Street.

Bitcoin Hits New Record Over $65,000 After USETF’s Unprecedented Launch

Source link Bitcoin hits new all-time high above $65,000 after USETF unprecedented launch

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