North America’s first Bitcoin ETF got off to a stellar start in its debut, with investors exchanging $165 million worth of shares.
After a relentless surge in the world’s largest digital currency, the first Bitcoin product that’s officially labeled an exchange-traded fund debuted Thursday in Toronto.
It’s worth noting, though, that Europe has several crypto-tracking products that function like an ETF.
The new fund, called Purpose Bitcoin ETF (ticker BTCC), invests directly in “physical/digital Bitcoin,” issuer Purpose Investments Inc. said in a statement.
The cryptocurrency has captivated investors from billionaire Elon Musk to hedge-fund moguls including Alan Howard and Paul Tudor Jones.
It may well be “the stimulus asset,” DoubleLine Capital LP chief Jeffrey Gundlach tweeted, in a reference to Bitcoin’s rally amid a wave of cash pumped into the financial system during the pandemic.
While the digital asset has already surged fivefold in the past year — spurring concern about a speculative froth in global markets –it’s grabbing more mainstream attention, especially after Tesla Inc.’s recent $1.5 billion purchase.”
“Bitcoin has gotten a boost from news of large firms like Tesla and Mastercard showing support for crypto.
Tesla last week revealed it had bought $1.5 billion worth of bitcoin and plans to accept the digital coin as payment for its products, while Mastercard said it will open up its network to some digital currencies.
PayPal and BNY Mellon have also made big moves to support crypto. Tesla’s use of corporate cash to buy bitcoin sparked speculation over whether other major companies would follow suit.
Uber CEO Dara Khosrowshahi told CNBC last week that the company had discussed but “quickly dismissed” the idea of buying bitcoin but is considering whether to accept cryptocurrencies as payment.
These developments have led many crypto investors to believe the latest bull run is different than past rallies.
Bitcoin skyrocketed to nearly $20,000 in late 2017 before losing more than 80% of its value the following year.
Bitcoin believers say that, whereas the 2017 bubble was driven by retail speculation, the current cycle is being fueled by demand from institutional investors.
“I think bitcoin is a much more stable asset class today than it was three years ago,” Michael Saylor, CEO of enterprise software firm MicroStrategy, told CNBC’s “Street Signs Asia” program on Tuesday.
“It used to be dominated by leveraged retail traders … on international markets with a lot of leverage.”
MicroStrategy and Jack Dorsey’s fintech firm Square hit the headlines last year after taking the unusual strategy of using corporate cash to purchase bitcoin.”
Digital currency Bitcoin has risen to a new record high of more than $50,000 (£36,000).
Supporters say Bitcoin can act as a store of value, like a digital version of gold.
“If that narrative comes to fruition, then the growth potential is off the charts as $50,000 per bitcoin equates to a market cap of roughly $931bn, which is almost 9% of gold,” said John Wu, president at blockchain company Ava Labs.
“If BTC meets gold’s market cap, then that would be at least $500,000 per bitcoin.”
“Paypal’s cryptocurrency services are coming to the United Kingdom, as the digital payments giant is now targeting non-U.S. countries. Buy, sell and hold digital asset products could be available for Paypal’s U.K. customers in “a number of months.”
Who Is Cathie Wood And Why Are Ark’s Bets on Bitcoin & Tesla Important?
Forbes called her “the newest superstar investor,” and it’s not hard to see why.
Cathie Wood is radically disrupting the way money is allocated. Fighting the rise of passive – what she calls the “greatest misallocation of resources in history” – Wood’s funds are actively managed exchange-traded funds that give investors exposure to public companies in key areas of innovation.
In this video, Cathie Woods discusses ARK’s recent Bitcoin Investment Thesis white paper and what the prospects are for innovation in 2021.
“Twitter CEO Jack Dorsey and rapper Jay-Z have announced a new Bitcoin fund that will focus on the cryptocurrency’s adoption in India and Africa.
The pair will invest 500 Bitcoin, which is currently worth around $24million (£17.3m), in the endowment fund named ₿trust.
“JAY-Z/@S_C_ and I are giving 500 BTC to a new endowment named ₿trust to fund #Bitcoin development, initially focused on teams in Africa & India. It‘ll be set up as a blind irrevocable trust, taking zero direction from us,” Mr Dorsey tweeted on Friday.”
Top US Wall Street Investment Bank Develops Framework for Trading Bitcoin
“Bitcoin enjoyed another boost yesterday at the end of a record-breaking week as the world’s largest investment bank outlined plans to trade it.
JP Morgan became the latest Wall Street bank to underline how seriously it is taking the biggest cryptocurrency by saying that it would start trading bitcoin “at some point”.
The price of the digital asset has risen by as much as a quarter this week amid signals that it is becoming mainstream and is being accepted by big financial institutions that previously were dismissive of its prospects. Tesla, the carmaker run by Elon Musk, said on Monday that it had invested $1.5 billion in bitcoin and pledged in future to take it as payment for vehicles.”
If we learned anything in 2020, it was that things can happen fast in the financial markets.
As Michael Saylor explains in the video below for his company, Micro Strategy 2020 has been largely about figuring out the Bitcoin strategy for their business and implementing it in typical Saylor-style – FAST!