On Friday, Bitcoin went beyond the $60,000 barrier for the first time since April, as investors were buoyed by signals that a futures ETF will be approved soon. It implies the digital currency isn’t far off from it’s all-time high of $64,863 set in April of this year.
According to Bloomberg, market sentiment is improving as the SEC prepares to allow the first US bitcoin futures ETF to begin trading next week.
An ETF is a type of mutual fund that tracks the performance of a number of different assets, such as stocks or currencies. An ETF can be traded in the same way that a stock can.
Bitcoin to Surge by10X?
Bitcoin (BTC) might reach $500,000, according to ARK Invest CEO Cathie Wood, if institutional investors adopt the benchmark cryptocurrency.
Bitcoin is now selling at $61,353, but according to Financial Review, Wood believes that if institutions dedicate just 5% of their investment capital to BTC, the price could rise by over tenfold.
According to Wood, who spoke at the CFA Societies of Australasia convention,
She stated that she had witnessed two periods in her financial career where new asset classes appeared to be entering institutional portfolios. Property throughout the 1970s and 1980s, as well as emerging markets.
If institutions around the world allocated 5% of their portfolios to Bitcoin, that allocation alone would add nearly $500,000 to Bitcoin’s price, and this is only one of many use cases out there.
Large corporations are already bullish on crypto, such as Square, MicroStrategy, and Tesla, adding even more Bitcoin to their balance sheets, according to Wood.
Wood’s remarks come after ARK filed a request with the Securities and Exchange Commission (SEC) for approval of a Bitcoin futures exchange-traded fund (ETF). According to the proposal, the fund will invest in Chicago Mercantile Exchange-traded Bitcoin futures contracts that are cash-settled in US dollars (CME).