Bitcoin price hits a new all-time high of over $66,000 as investors get excited over ETF

After the introduction of the first Bitcoin exchange-traded fund, the price of Bitcoin rocketed to a record high of more than $66,000 (€56,669) on Wednesday, marking a momentous day for the world’s largest cryptocurrency.

At about 14:00 GMT, the cryptocurrency, which was trading for less than a dollar (12 years ago) (€0,85), reached a high of $66,273 during the day (16:00 CEST in). This represents a greater than 50 percent increase over a month ago and a more than 450 percent increase over a year ago.

The first exchange-traded fund (ETF) tied to Bitcoin’s price on the New York Stock Exchange, which began trading on Tuesday, has benefited Bitcoin over the last month. Investors are hopeful that this new regulated financial product would allow fresh funds to enter the bitcoin industry.

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The ETF witnessed 24.4 million trades and concluded substantially up in the first trading session, indicating that it was a success.

In the direction of a more stable cryptocurrency?Bitcoin

“This demonstrates that there is a high desire for bitcoin exposure,” said Fawad Razaqzada, a ThinkMarkets analyst. He clarified that buying this ETF does not imply a direct investment in Bitcoin.

Investors would not be wagering directly on Bitcoin by purchasing shares in this new ETF, he added. Their money will be invested in bitcoin-linked future contracts.

The indirect element of this transaction was crucial to the SEC, the US market regulator, which has repeatedly warned about Bitcoin’s extreme volatility.

Regulators have hesitated to take a stand on crypto-currencies, which have a decentralized network that is tough to regulate.

In the last 12 months, however, several of Wall Street’s largest tech and financial companies have launched new cryptocurrency-related initiatives.

Paypal, the online payments behemoth, began off the price surge a year ago, on October 21, 2020, by establishing a cryptocurrency buying, trading, and paying service.