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Bitcoin Eyes Highs; U.S. ETF Launch 'Almost Definitely' Coming

CryptocurrencyMar 19, 2021 04:48PM ET
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By Yasin Ebrahim

Investing.com – Bitcoin looks set to close out the week near record highs Friday, on signs investors continue to back the cryptocurrency for the long haul ahead of a potential boost from a U.S. ETF that will "almost definitely" be launched this year, experts say.

BTC/USD rose 1.06% to $58,829.8, and remained just shy of its record high of $61,795.8.

"[T]he new US administration’s more crypto-friendly leadership will almost definitely spur the launch of an approved BTC ETF in 2021,"  Alexander Blum, managing director of Two Prime, a digital asset investment fund, said in an email, referring to incoming SEC chairman Gary Gensler.

"This can be seen by the increase in viable applications and the rampant hiring for ETF job roles at Grayscale this very moment. These groups are not making these investments blindly," Blum added.

The optimism over a U.S. bitcoin ETF launch comes amid ongoing signs of long-term demand for the popular cryptocurrency.

Rising outflows from bitcoin exchanges – a bullish on-chain indicator –showed that an increasing number of investors are moving their coins off exchanges to private wallets to hold bitcoin for the long haul.

The outflows continued to increase near levels last seen when BTC made its prior peak above $61,000, according to data from Cryptoquant.

"The ongoing reduction in on-exchange bitcoin available, coupled with rampant fiat currency debasement and institutional buying will all continue to provide macro-economic dynamics for the continued growth and utility of Bitcoin," Blum said.

But not everyone is bullish on bitcoin.

Bank of America (NYSE:BAC) made headlines this week, arguing that bitcoin's volatility makes it a poor destination as a store of value.

"Bitcoin has also become correlated to risk assets, it is not tied to inflation, and remains exceptionally volatile, making it impractical as a store of wealth or payments mechanism,” Bank of America analyst Francisco Blanch wrote in a note.

But the swings in bitcoin are not as pronounced as they once were and will continue to decline as new ways for institutional investors to access the popular crypto emerge, drawing in an influx of liquidity.

"The lack of a derivatives market has led to greater volatility. As crypto derivatives volume grows at astonishing rates (1,800% in 2020), this will change," Blum said.

Bitcoin Eyes Highs; U.S. ETF Launch 'Almost Definitely' Coming
 

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Comments (16)
Darryl Allen
Darryl Allen Mar 20, 2021 9:20PM ET
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If I can't pay my taxes or my mortgage with it, how is it worth anything?
Nordin Mohamad
Nordin Mohamad Mar 20, 2021 7:39PM ET
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bitcoin is digital ponzi conman currency, once the music stop the last holder will jump out the window
mustajab qadri
mustajab qadri Mar 20, 2021 7:39PM ET
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same as stock
Rick Baier
Rick Baier Mar 20, 2021 1:44PM ET
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Traditional banking have been ripping me and my age group off our whole lives. You borrow money from a bank they charge you 9-16 percent interest you deposit money with them the give you 0.15 percent my baby boomer generation (1946-1964) are scared of Bitcoin. You all better adapt . I have no sympathy for bankers or their legalized crime syndicate they Run.
Mh Maruf Ahmed
Mh Maruf Ahmed Mar 20, 2021 1:44PM ET
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hallo
RichUncle Pennybags
RichUncle Pennybags Mar 20, 2021 3:59AM ET
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The stock market is more volitile today because if the central banks coordinating people to move markets.
perplexed76 .
perplexed76 . Mar 19, 2021 10:34PM ET
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gamblers were scared before powell speech then start palyng with their toy again
Yaqoob GOhhga
Yaqoob GOhhga Mar 19, 2021 9:54PM ET
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yaqoob I DEAF
peter neal
peter neal Mar 19, 2021 9:54PM ET
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Easy to short ETF. Bad idea.
RichUncle Pennybags
RichUncle Pennybags Mar 19, 2021 9:20PM ET
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Buy mana, thor, harmony, ether. at least those have potential for real gains and built on emerging market tech. Bitcoin is topped out
Ethan Strong
Ethan Strong Mar 19, 2021 7:11PM ET
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To read what a bank analysts says is just another opinion that smells like all the other opinions.
Mackey Calvin
Mackey Calvin Mar 19, 2021 6:50PM ET
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Bank of America is not one to talk about bitcoin,  they should stick to their banking issues.
Connecticut Yankee
A_Jaundiced_Eye Mar 19, 2021 6:46PM ET
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Absolutely.  To believe in BitCoin, all you have to do is have faith in one thing happening: that central banks will simply give up control over their money supplies - GOOD LUCK WITH THAT ! !
Rey Blandon
Rey Blandon Mar 19, 2021 6:40PM ET
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Buy buy buy dont BE SCARE. DO OR DIE!!!
Jay Rhyder
Jay Rhyder Mar 19, 2021 5:46PM ET
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Francisco from Bank of America is wrong... or he's just plain lying to drive down the crypto-currency... Bitcoin has always been tied to inflation. all one has to do to see it is go to the CBOE website. may have a shark that shows inflation may have a chart that shows the inflation rate and Bitcoin almost in the exact position as both go up.... that's why I don't listen to these people they don't know what they're talking about either that or they're just plain Liars trying to drive down the cryptocurrency or stock for that matter so they can get in at a lower price.
rr bonne
rr bonne Mar 19, 2021 5:46PM ET
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yea. bad decision not to get on the BTC wagon, now, wants to do all they can against it
Rafiq Khan
Rafiq Khan Mar 19, 2021 5:38PM ET
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Zach Lohman
Zach Lohman Mar 19, 2021 5:36PM ET
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An etf would be a major positive as it would allow more derivative plays, hedging and leverage. Fingers crossed.
Shayne Payne
Magpie Mar 19, 2021 5:31PM ET
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great newsBAC have been doing hit pieces on Bitcoin for a decade, so no change there.
 
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