Bitcoin hit a new high on Wednesday after taking another step towards mainstream status as the world’s largest cryptocurrency made a foray on Wall Street.
A Bitcoin exchange-traded futures fund (ETF), a type of financial instrument, debuted on the New York Stock Exchange on Tuesday.
The Bitcoin Strategy ETF rose almost 5% on its first day of trading on Tuesday.
The fund is expected to be a more accessible vehicle for traditional investors and therefore could boost cryptocurrency trading.
At one point on Wednesday, Bitcoin’s hit surpassed $ 66,000 before retreating.
“It’s a moment of validation,” said Jesse Proudman, co-founder and CEO of Makara, a crypto consulting firm. “It’s no longer about whether this asset class continues to exist, I think it’s a really significant mark in the history of the broader digital asset class.”
More than 24 million shares of the ProShares Bitcoin Strategy ETF – traded under the ticker symbol BITO, have changed hands, according to data compiled by Bloomberg.
With nearly $ 1 billion in revenue, BITO’s early days were only behind a BlackRock carbon fund for a first day of trading, with the latter ranking higher due to pre-seed investments, according to Athanasios Psarofagis of Bloomberg Intelligence.
U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler explained why the regulator has given the green light to the Bitcoin Futures ETF but not a spot bitcoin ETF.
In an interview with CNBC, Gary Gensler reiterated that his agency “should be technologically neutral, but not politically neutral.”
“What we’re trying to do is make sure the best we can within our authorities to bring the projects within the scope of investor protection,” he said.
“Bitcoin futures have been overseen by our sister agency, the Commodity Futures Trading Commission (CFTC), which I have already been honored and proud to serve there and it has been four years.”