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Bitcoin hovers near 6-month high on ETF hopes, inflation worries

Reuters Tokyo | Updated on October 18, 2021

Cryptocurrency players expect the first US bitcoin ETF to trigger an influx of money from institutional players

Bitcoin hovered near a six-month high early on Monday on hopes that US regulators would soon allow cryptocurrency exchange-traded funds (ETF) to trade, while global inflation worries also provided some support.

Bitcoin last stood at $62,359, near Friday’s six-month high of $62,944 and not far from its all-time high of $64,895 hit in April.

American bitcoin futures

The US Securities and Exchange Commission (SEC) is set to allow the first American bitcoin futures ETF to begin trading this week, Bloomberg News reported on Thursday, a move likely to lead to wider investment in digital assets.

Cryptocurrency players expect the approval of the first US bitcoin ETF to trigger an influx of money from institutional players who cannot invest in digital coins at the moment.

Also see: Millennials pull crypto out of the shadows

Rising inflation worries also the increased appetite for bitcoin, which is in limited supply in contrast to the ample amount of currencies issued by central banks in recent years as monetary authorities printed money to stimulate their economies.

Not game-changer

But some analysts noted that, after the recent rally, investors may sell bitcoin on the ETF news.

“The news of a suite of futures-tracking ETFs is not new to those following the space closely, and to many this is a step forward but not the game-changer that some are sensing,” said Chris Weston, head of research at Pepperstone in Melbourne, Australia.

“We’ve been excited by a spot ETF before, and this may need more work on the regulation front,” he said

Published on October 18, 2021

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