Rising tide lifts all boats! Bitcoin ETFs gain market traction, helping Bitcoin break through $67,000

Bitcoin prices hit a new high, breaking through $67,000 per coin for the first time. This shows that after the successful launch of the first Bitcoin ETF for investors, investors are optimistic about the mainstream acceptance and recognition of Bitcoin, and this enthusiasm has pushed the price of Bitcoin to a new high.
Although Bitcoin has been hovering in a narrow range in recent days, approaching its previous all-time high in April, the breakout was much faster than in the past: Bitcoin prices rose by more than $1,000 in a minute after the U.S. stock market opened last night. "This is an exciting moment," said Jesse Proudman, co-founder and CEO of cryptocurrency consulting firm Makara. "It's no longer a question of whether this asset class will continue to exist - I think this is a really meaningful mark in the history of digital assets."
Demand for the ProShares Bitcoin Strategy ETF continued to soar, with more than 29 million shares changing hands on Wednesday, representing a turnover of more than $1.2 billion, surpassing the fund’s first-day record.
Bitcoin has climbed to its latest highs, driven by the huge liquidity brought by the Federal Reserve's massive money printing, a large number of speculative bets and broader expectations of institutional investors. But the process has been full of twists and turns. Previously, due to criticism of its energy consumption and the crackdown on cryptocurrencies in some countries, Bitcoin once fell below $30,000 in June. Then, as the cryptocurrency industry adapted to the situation in the market, Bitcoin began to recover.
However, against the backdrop of the high price of Bitcoin, many investors are deeply skeptical about the role of Bitcoin in the financial field. Securities regulators are also stepping up their scrutiny of cryptocurrencies, and U.S. officials have blocked Coinbase Global Inc. (COIN.US) from conducting a Bitcoin loan program. Critics also question the claim that the scarcity of this asset makes it a long-term means of storing value.
Bitcoin is up nearly 130% this year. The largest cryptocurrency by market value rose more than 300% last year and 95% in 2019 after plunging 73% the year before. Earlier, ProShares' Bitcoin ETF had nearly $1 billion in turnover on its first day of trading on Tuesday, setting a second-highest record. According to a press release, the ProShares Bitcoin Strategy ETF closed Wednesday with $1.1 billion in assets under management and more than $1.2 billion in volume. According to relevant data, this is the fastest speed for an ETF to break the $1 billion mark.

As Bitcoin reaches its all-time high, this Bitcoin ETF also rises. Other issuers are also planning to launch Bitcoin-related ETFs, and VanEck and Valkyrie's Bitcoin futures ETFs may be listed this month. Cryptocurrency fund management company Grayscale has officially confirmed plans to submit an application to the U.S. Securities and Exchange Commission (SEC) to convert its Bitcoin Trust into a Bitcoin spot ETF.
"It's clear that the successful launch of Bitcoin futures ETFs in the U.S. has contributed to the surge in Bitcoin prices to such levels," said Leah Wald, CEO of Valkyrie Investments. "The optimism about the successful launch of Bitcoin futures ETFs is pouring into the cryptocurrency market at a crazy pace, with funds starting to pour in from all corners of the market," Wald added.
Bitcoin supporters have long supported a controversial view of the virtual currency as a store of wealth and a hedge against the worst inflation threat in years. Wall Street banks have also responded to the cryptocurrency boom: Bank of New York Mellon Corp., Goldman Sachs Group Inc. and Morgan Stanley are among the companies offering cryptocurrency-related services. Dawn Fitzpatrick, chief investment officer of Soros Fund Management LLC, said the company holds some cryptocurrency assets and that cryptocurrencies "have gone mainstream."
Meanwhile, there are those who believe cryptocurrencies still have a long way to go. For example, SkyBridge Capital founder Anthony Scaramucci said that while about 10% of financial services firms are “crazy about cryptocurrencies,” the vast majority are still hesitant about the asset class.
Looking back over the past few years, a whole new crypto economy has been formed in the market. In addition to cryptocurrencies, non-substitute tokens have quickly become the focus of attention in areas such as digital art and collectibles. Earlier, after Messi joined Paris Saint-Germain (PSG), PSG announced that part of Messi's salary would be paid in its digital currency. The digital currency is called "PSG Fan Tokens" and was created by the crypto platform Socios.com in January 2020.
In a decentralized financial system, people can borrow, trade and buy insurance directly from each other without the help of intermediaries such as banks. According to data from CoinMarketCap.com, the birth of Bitcoin has triggered a digital currency revolution and spawned more than 12,000 other currencies. Currently, the total market value of cryptocurrencies exceeds $2.5 trillion. As of press time, Bitcoin is priced at $66,073.20 per coin.