Bitcoin’s total market value surged to over $ 1 trillion on Friday as a combination of institutional buying and speculative hype has repeatedly pushed the digital asset to new highs this year. Each bitcoin was worth $ 55,400 at around 2 p.m. ET. It is up 86% over the previous year.
The enthusiasm for Bitcoin comes from all corners. Companies like
(Ticker: TSLA) and software companies
(MSTR) bought it for their treasuries; Financial companies like
Bank of New York Mellon
(BK) plan to keep it for customers; and retail investors can easily buy it through finance apps like
(PYPL) and Robinhood.
Asset managers and providers of exchange-traded fund providers are creating more ways to buy Bitcoin for those who want to trade through their broker accounts rather than buying on an exchange or holding the coins themselves. The investment firm Purpose Investments has the
Purpose Bitcoin ETF
(BTCC.Canada) on Thursday on the Toronto Stock Exchange. Nearly 10 million shares were traded on day one, making it one of the highest volume stocks in Canada. However, many Americans cannot buy it through their brokerage accounts.
For example, (SCHW) allows clients to trade in Toronto listed securities but not in non-US exchange traded products such as Canadian ETFs.
There is no US-listed Bitcoin ETF, but there are an increasing number of securities that are structured as trusts and traded on public markets. The biggest of these is that
Grayscale Bitcoin Trust
(GBTC) with nearly $ 40 billion in net worth. Another that was recently launched is called the Osprey Bitcoin Trust (OBTC). These trusts, unlike ETFs, can trade at a high premium on their net asset value, so they have an additional risk.
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One question now is whether Bitcoin will maintain its momentum or whether other digital assets could steal its thunder. While Bitcoin is unique in that its supply is limited and it has been backed by regulators, other coins may be more useful.
A prominent investor in this space thinks Bitcoin will continue to rise, but also expects some other digital assets to continue to rise. Dan Morehead, founder of Pantera Capital, launched the first hedge fund in 2013 that invests directly in Bitcoin. Other funds also invest in other parts of the crypto ecosystem.
“We are of the opinion that Bitcoin will increase sharply in the next few years,” he said in a recent interview. “But Ethereum and Polka Dot will continue to rise. And then the tokens that are built on these protocols will continue to rise. “
Ethereum is the second most important cryptocurrency and has unique programming functions. Polka Dot allows users to transfer assets from one blockchain to another.
Write to Avi Salzman at firstname.lastname@example.org