Earlier today, the bitcoin hit an all-time high of $6000 for the third time in the past month. The last stable price of Bitcoin was $5,600.
This jump has been predicted by financial analysts including Holger Zschapitz, the senior editor at Welt as the idea of Bitcoin exchange traded funds in regulated markets was floated. The US Bitcoin market is highly anticipating this new development in the trading of the all famous crypto-currency Bitcoin, resulting in an increased demand for the coin itself.
During recent times many crypto-currency focused hedge funds based in US, has started investing in Bitcoins for their clients through the Bitcoin Investment Trust (GBTC), an investment vehicle operated in US stock markets. A billionaire technology investor Mark Cuban revealed in an interview that he has invested huge amounts in exchange-traded funds in Sweden.
The introduction of ETFs in US stock markets will provide more opportunities for low profile investors and provide them with better liquidly options. These ETFs strive to create a better eco-system for institutional and retail traders to invest in Bitcoins. Some of the major Bitcoin exchanges in US have been working to provide a more efficient infrastructure for the investors along with option contracts based on Bitcoin.
Wall street traders’ number one fear is missing out on a hot investment. High profile investors and traders have already started placing moneys in Bitcoin. The recent surge in the price of Bitcoin is believed to be triggered by the entrance of large-scale traders and investors in major regions including Japan and US. Institutional investors have started to engage in Bitcoin and crypto-currency trading.
“A year ago, they didn’t know about it, six months ago they thought it was a scam and now they realise they simply just don’t understand it and are starting to get nervous and want to learn about it. There is an element of FOMO. People have been told by their advisers, ‘Don’t touch it! It’s a bubble!’, and now they are upset they might have already missed it,” said David – co-founder of venture capital fund Spice