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Bitcoin Inches Towards All-Time High Ahead Of Futures ETF Listing.

On Tuesday, bitcoin hit a six-month high and was within striking distance of its all-time high, as traders hoped that the anticipated registration of a futures-based US exchange-traded fund would signal a surge in cryptocurrency investment. During the Asian session, Bitcoin, the world's most popular cryptocurrency, climbed as much as 1.5 percent to $62,991, its best since mid-April and close to its all-time high of $64,895. It was last seen trading flat.

Bitcoin, which has been known for its volatility for the past 13 years, has risen by 40% this month on expectations that the introduction of bitcoin exchange-traded funds (ETFs) - of which several are in the works - will bring billions of dollars managed by pension funds and other large investors into the sector.

ETFs are asset-tracking securities that can be bought and sold on a stock market. The Securities and Exchange Commission (SEC) of the United States is anticipated to approve ProShares' Bitcoin Strategy ETF on Tuesday, with the ticker BITO.

Analysts said the ETF will certainly make cryptocurrency more accessible to retail investors. "It has the potential to draw flows from investors who prefer the convenience of an ETF to the perceived risk of an exchange," Martha Reyes, head of research at crypto exchange Bequant, said.

Other analysts have cautioned, however, that because the fund will not invest directly in bitcoin but rather in Chicago-traded futures, any immediate ramifications for flows may be limited.

Speculators, on the other hand, have been betting that its launch will be a good indication for spot prices. Bitcoin futures were last trading at $62,380, up 1.2 percent. "This could lead to increased buying pressure on the CME, leading to a rise in open interest."

More cash and carry opportunities would emerge as a result, putting pressure on the spot market to buy "In a note, cryptocurrency analysts at Arcane Research stated. Crypto ETFs have been introduced in Canada and Europe this year, owing to a surge in interest in digital assets.

Although Invesco cancelled its intentions for a futures-based ETF on Monday, VanEck and Valkyrie are among the fund managers pursuing U.S.-listed ETFs. The Valkyrie was cleared for listing on the Nasdaq on Friday.

Grayscale, the world's largest digital currency manager, plans to transform its Grayscale Bitcoin Trust into a spot bitcoin ETF, according to CNBC. After a 75-day period in which the SEC could object to its listing elapsed on Monday, the ProShares ETF is expected to begin trading on Tuesday.