Bitcoin futures frenzy erupts as day traders pile into ETF bets
BNN Bloomberg
Bitcoin-to-the-moon traders are back with a vengeance as demand jumps for bullish contracts across crypto exchanges.
Bitcoin-to-the-moon traders are back with a vengeance as demand jumps for bullish contracts across crypto exchanges.
The world’s largest digital currency rose about 3 per cent to more than US$59,000 on Friday -- taking this month’s rally to over 35 per cent -- after Bloomberg News reported the U.S. Securities and Exchange Commission looks poised to allow the country’s first futures-based cryptocurrency ETF.
As institutional and retail demand grows for the US$1.1 trillion asset, speculators are eying a return to April’s US$64,870 record peak while premiums are rising for derivatives betting on higher prices.
“The U.S. was always the big prize and signals further regulatory validation and acceptance of cryptocurrencies,” said Antoni Trenchev, co-founder of crypto lender Nexo. “Momentum is clearly with Bitcoin right now and it’s only a matter of time before the April high is taken out.”
All month long, speculation of imminent ETF approval has driven up Bitcoin, helping it outperform smaller tokens to reclaim 46 per cent of the crypto ecosystem’s total market value. An exchange-traded fund is expected to draw more interest from investors that prefer buying a familiar, regulated product over navigating digital-currency exchanges.
