Bitcoin near six-month high on ETF hopes, inflation concerns

by Jonathan Adams

Bitcoin stood at $62,359, near its all-time high of $64,895 hit in April

Bitcoin hovered near a six-month high early on Monday on hopes that U.S. regulators would soon allow crypto currency exchange-traded funds (ETF) to trade, while global inflation worries also provided some support.

Bitcoin last stood at $62,359, near Friday’s six-month high of $62,944 and not far from its all-time high of $64,895 hit in April.

Ether, the coin linked to ethereum blockchain and the second largest crypto currency, surged to $3,885. Cardano and dogecoin prices gained marginally. On the other hand, other digital tokens like Solana, Shiba Inu, Binance Coin also gained over the last 24 hours.

The U.S. Securities and Exchange Commission (SEC) is set to allow the first American bitcoin futures ETF to begin trading this week, Bloomberg News reported on Thursday, a move likely to lead to wider investment in digital assets.

Crypto currency players expect the approval of the first U.S. bitcoin ETF to trigger an influx of money from institutional players who cannot invest in digital coins at the moment.

Rising inflation worries also increased appetite for bitcoin, which is in limited supply, in contrast to the ample amount of currencies issued by central banks in recent years as monetary authorities printed money to stimulate their economies.

But some analysts noted that, after the recent rally, investors may sell bitcoin on the ETF news.

The news of a suite of futures-tracking ETFs is not new to those following the space closely, and to many this is a step forward but not the game-changer that some are sensing, said Chris Weston, head of research at Pepperstone in Melbourne, Australia.

He said: We’ve been excited by a spot ETF before, and this may need more work on the regulation front.

This article is for information purposes only.
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