Bitcoin is on a vertical tear, continuing its rapid resurgence and getting close to breaking its all-time high.
The digital token on Monday climbed 8% to $67,310, well above its $44,000 valuation at the start of the year and less than $2,000 away from surpassing its November 2021 record high of around $69,000.
What's fueling the rally? Cryptocurrency watchers say bitcoin is soaring in part because demand is rising on so-called spot bitcoin exchange traded funds. The ETFs, which allow investors to dabble in crypto in a less riskier way than ever before, has attracted an huge influx of cash this year, experts said.
"Investors are getting turned on to the fact that bitcoin can be treated as an uncorrelated asset, which makes it extremely attractive for portfolio diversification," Joel Kruger, a market strategist at digital currencies exchange LMAX Group, told CBS MoneyWatch.
A spot bitcoin ETF allows investors to gain direct exposure to bitcoin without holding it. Unlike regular bitcoin ETFs, in which bitcoin futures contracts are the underlying asset, bitcoins are the underlying asset of a spot bitcoin ETF. Each spot bitcoin ETF is managed by a firm that issues shares of its own bitcoin holdings purchased through other holders or through an authorized cryptocurrency exchange. The shares are listed on a traditional stock exchange.
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