LONDON: Bitcoin passed the $60,000 mark on Wednesday, approaching its all-time high and continuing its unbridled rise since the approval of a new type of investment indexed to the cryptocurrency.
At 1325 GMT, bitcoin traded at about $60,301, closing in on its all-time high of $68,991 — that was struck in November 2021 and which some analysts believe is now within reach.
Since their approval on January 10 by US securities regulators, exchange-traded funds (ETFs) indexed to bitcoin have theoretically enabled a wider public to invest in the cryptocurrency without having to hold it directly. The funds themselves, however, do invest in the digital currency.
The expected approval of the new investment product had contributed in recent months to a rise in its price, which had largely fallen by the end of 2022 following the bankruptcy of several crypto giants.
The US launch of ETFs or ETPs (exchange-traded products) has “injected a fresh wave of optimism, propelling trading volumes and spotlighting crypto-linked firms”, notes Mikkel Morch of specialist fund ARK36.
The instruments are comparable to stocks or mutual funds as far as accessibility to everyday investors.
Some investors eager to recoup their bets had initially triggered a wave of mass withdrawals from the GBTC (Grayscale Bitcoin Trust) fund, once it had been converted into an ETF.
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