According to researchers at Fundstrat, a new ETF might give Bitcoin a significant boost. Bitcoin's equilibrium price could spike to as high as $168,000 if the ProShares exchange-traded fund (ETF) that will begin trading on the New York Stock Exchange (NYSE) on Tuesday attracts a significant wave of inflows from investors, according to the Fundstrat team, which previously published a year-end bitcoin price target of $100,000. The debut is being widely watched on Wall Street, where many firms have been working to develop a mechanism to market bitcoin-linked securities. The Bethesda, Maryland-based The New York Stock Exchange rang the bell Tuesday to commemorate the opening of ProShares' ETF, which trades under the ticker BITO and invests in bitcoin futures contracts rather than the cryptocurrency.
According to Coin Metrics, the price of bitcoin momentarily jumped 3% to $63,035.04 after trading began Tuesday morning, approaching its all-time high of $64,899. Bitcoin futures also increased by roughly 2%. Some claim that the use of cryptocurrency by businesses and fintechs reduces the impact of an ETF, particularly one linked to futures contracts. Through institutional-grade funds, financial apps like PayPal and Square's CashApp, or crypto-related equities like Coinbase and mining stocks, investors can obtain indirect exposure to bitcoin without really owning it.
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