© Reuters.

Investing.com – According to Tom Lee, founder of global analytics platform Fundstrat and big fan of digital currencies, the launch of the ProShares Bitcoin Strategy ETF (NYSE 🙂 could help increase the number of bitcoin purchases by new individual investors, as a result of which the value of BTC could rise by the end of the year to $ 168 thousand, or 170%.

On Tuesday, October 19, specialized exchange-traded products provider ProShares launched the Bitcoin Strategy ETF, which will be the first US-based cryptocurrency-pegged ETF. Such an exchange-traded fund should, in theory, give more investors access to bitcoin without having to worry about storing this virtual asset. Today, the result of this news was the rise in the price of bitcoin to a record level in the region of $ 65 thousand.

According to Lee, two factors will push bitcoin’s growth: the expectation that the launch of the new ETF will attract a significant inflow of funds, and the fact that some investors already have access to bitcoins, and the new way of owning them is likely to contribute to more purchases.

Lee stated that cryptocurrencies account for about 1% of allocated liquid assets, but the influx of ETF futures will serve as a key new short-term driver for Bitcoin.

The demand for Bitcoin ETFs could increase by $ 50 million per day if, for example, the BITO fund turns out to be as popular as the Invesco QQQ Trust (NASDAQ :). QQQ has approximately $ 190.999 million in assets and another fund linked to, the Grayscale Bitcoin Trust (BTC) (OTC :), owns approximately $ 32 million in assets, making them the largest crypto funds.

Written by Laura Sanchez

Original article

A warning: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy / sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source link