Bitcoin climbed to a record high on October 20, a day after a bitcoin exchange-traded fund (ETF) made its landmark debut on the New York Stock Exchange (NYSE) for the first time on October 19, garnering strong demand in a sign of the booming investor interest in the asset class.
The world’s leading cryptocurrency was up 3.30% at $66,364.72, after reaching a record of $67,016.50, topping the $64,895.22 hit on April 14 this year.
The Proshares Bitcoin-linked ETF started trading on the stock exchanges with the ticker name of BITO. ProShares Bitcoin Strategy ETF was trading 3.2% higher at $41.2 on the NYSE.
Just 20 minutes into its trading premiere, about 6.4 million shares of BITO worth roughly $264 million changed hands, according to data compiled by Bloomberg.
Ethereum also rose 7.4% to cross back over the $4,000 level. The world’s second-largest cryptocurrency traded at $4,104.61 approaching its all-time intraday high of 4,380 in May.
The surge has come as more businesses, professional investors and even the government of El Salvador buy into Bitcoin, further broadening its base beyond its initial core of fanatics.
Investors are getting more interested in Bitcoin because they’re always looking for assets whose prices moves independently of everything else in their portfolios.
More high-minded fans say digital assets are simply the future of finance, allowing transactions to sidestep middlemen and fees with a currency that’s not beholden to any government.
However, cryptocurrencies are still very far from winning over everyone. Critics point to how the digital asset is still not widely used as forms of payment. They also criticize how much energy is used by the crypto system, which can ultimately mean higher bills for home heating and other utilities amid a global crunch, as well as more climate-changing emissions.
Although, the biggest threat to cryptocurrency is the regulatory scrutiny it receives.
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