Whatâs Going On Here?The price of bitcoin hit its highest level in five months on Friday, as the butt-numbing wait for a bitcoin exchange-traded fund (ETF) finally looks like itâs come to an end. What Does This Mean?There arenât any US bitcoin ETFs to speak of right now, but thatâs not for lack of trying: theyâve just always been rejected by the countryâs financial regulator. But at least one looks likely to hit the market this week, and there are a couple of reasons why itâs finally happened (tweet this). For one thing, the ETF will hold bitcoin futures â that is, derivatives contracts that speculate on its price at a later date â rather than bitcoin itself. And for another, it was filed under mutual fund rules that the regulator says gives investors âsignificant protectionsâ that previous hopefuls lacked.
This could be a big deal. Certain investors and institutions have, after all, been uncomfortable with the concurrent risks of buying a volatile asset and relying on crypto-specialist platforms. But regulatory sign-off could be the assurance they need to take the plunge and send demand for bitcoin even higher. That might be why the OG cryptocurrencyâs price hit $59,920 on Friday â a stoneâs throw from its all-time high of $64,000. Why Should I Care?For markets: All for one.
This news is almost universally positive for bitcoin trading platforms and mining firms, given the boost itâll give crypto access and investor interest alike. That revelation wasnât lost on investors: both crypto exchange Coinbase and bitcoin miner Bit Digital saw their share prices jump on Friday.
For you personally: Weâre all bitcoin investors.
Fresh analysis from MSCI showed that at least 52 companies worth a combined $7 trillion are exposed to crypto, whether directly â Coinbase, say â or indirectly, like bitcoin-holder Tesla. In other words, you mightâve benefited from its ascent without even realizing it â if accidentally endorsed its problematic environmental impact too. | 