The world’s largest cryptocurrency, Bitcoin reached record highs yesterday, October 20, as the first bitcoin futures-based exchange-traded fund was launched. In its debut on Tuesday, the ProShares Bitcoin Strategy ETF (BITO) increased 3% in value.
The overall climb reached up to 3.9% making the total Bitcoin value go up to $66,398.25 by 4 p.m. crossing the last record of $64,899, back in April. Billionaire investor Paul Tudor can also be credited for the positive sentiment towards Bitcoin investment as he called it his “preferred inflation hedge.”
“Bitcoin would be a great hedge. Crypto would be a great hedge. There’s a plan in place for crypto and clearly it’s winning the race against gold at the moment. I would think that would also be a very good inflation hedge. It would be my preferred one over gold at the moment.” he said on CNBC.
There has been a division over the futures-based ETF and the spot price ever since the new strategy has brought up Bitcoin value. The views are divided within these two binaries, while some think this rise shows the instability in U.S. politics.
Simeon Hyman, head of investment strategy at ProShares defended his approach by saying, “There’s a lot of evidence from experts that the futures market, if anything, is actually kind of a better place for price discovery,” to CNBC’s ‘ETF Edge’.
Managing director of CoinDesk Indexes, Jodie Gunzberg commented in favor of tracking spot price as well by saying, “More products are great, but I just don’t see the point of investing in futures-based bitcoin ETFs when you can buy the asset in the spot market.”
With ethereum, cardano, Binance’s BNB, Ripple’s XRP, solana and dogecoin all rising on their own value along with Bitcoin, the overall crypto market also broke record by reaching $2.6 trillion.