Cryptocurrencies Bitcoin’s value rose to more than $ 60,000, hopes for ETF start to boost

In addition to professionals, ETF products can attract small investors to the market for whom the threshold for going to cryptocurrencies has been too high.

World the value of bitcoin, the best-known cryptocurrency, rose to $ 60,000 on Friday. It was the largest of bitcoin value for half a year.

Investors thought that the reason for the price increase was that the US Securities and Exchange Commission (SEC) was expected to approve trading in listed funds, ie ETFs, on Bitcoin futures in the coming week, news agency Reuters reports.

In a futures trade, agreements are made at what price the other party can buy or sell a product, such as bitcoin, at a certain point in the future.

They thus trade in predictions of how the price of that security will behave.

Such for example, securities are popular in commodity trading, especially among professional securities traders, but bitcoin-related etf products are also projected to be of interest to retail investors.

To date, cryptocurrencies have been traded mainly on separate cryptocurrency exchanges. Their trading practices and the already transfer of funds and the conversion of cash into digital currencies to these exchanges have been questioned by many small investors.

Therefore, the SEC’s decision is seen as a reinforcing thread in the debate over whether cryptocurrencies are becoming some sort of socially legitimate challenger for central banks ’so-called fiat currencies.

ETF investment products have grown in popularity in recent years.

According to the news agency Bloomberg, the first futures-based Bitcoin etf may go on sale already this week, and there may still be four similar products on sale this month.

In Canada and Europe, ETF products based on cryptocurrency price developments are already on sale, according to news agency Bloomberg.

For cryptocurrencies has been typical also strong price fluctuations.

For example, the value of bitcoin fell first by 74 percent in the last full three years and then rose by 95 percent and 305 percent, Bloomberg says.

On Sunday, bitcoin was valued at more than $ 61,000 on the Binance cryptocurrency against the dollar-reflecting tether digital currency.

With worn out during the week, cryptocurrencies got even more clean since the Russian president Vladimir Putin said the American In an interview with CNBC Financial Mediathat cryptocurrencies “have a right to exist and can be used as means of payment”.

Admittedly, Putin was not yet ready to accept cryptocurrencies for oil trade payments.

Russian President Vladimir Putin and CNBC news anchor Hadley Gamble arrived at the International Russia Energy Week Forum to discuss Wednesday 13 October 2021.

Russia has been looking for alternatives to the dollar trade since the United States imposed various trade sanctions on Russia in 2014.

China instead banned trading in cryptocurrencies altogether in September. The decision at that time lowered the bitcoin price by about nine percent.

.

Next Post

Leave a Reply

Your email address will not be published. Required fields are marked *

Recommended