[Bitcoin Now] Once Nearly Reached 80 Million Won... Stalls Around 78 Million Won

Bitcoin Futures ETF Off to a 'Good' Start

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Gong Byung-sun] Bitcoin, the leading cryptocurrency, which had challenged the 80 million KRW range again, is faltering around the 78 million KRW level after failing to maintain its bullish momentum. Meanwhile, the Bitcoin futures exchange-traded fund (ETF) made a successful debut on the U.S. stock market, raising market expectations.

According to the domestic cryptocurrency exchange Upbit, as of 2:58 PM on the 20th, Bitcoin was recorded at 78.23 million KRW, down 0.69% from the previous day. Earlier that morning at 8:39 AM, it rose to 79.28 million KRW, approaching the 80 million KRW mark. However, it failed to climb further and showed a hesitant trend. On April 14, Bitcoin hit an all-time high of 81.99 million KRW, surpassing the 80 million KRW level.

The Bitcoin futures ETF’s strong performance on its first trading day is believed to have boosted Bitcoin’s price. On the 19th (local time), ProShares’ Bitcoin futures ETF (BITO), traded on the New York Stock Exchange (NYSE), closed at $41.94 (approximately 49,231 KRW), up 4.85% ($1.94) for the day. During the session, it even rose 5.4% to $42.15.

The ETF also succeeded in attracting significant trading volume. According to cryptocurrency media CoinDesk on the 19th, BITO’s trading volume on its first day exceeded $1 billion. This is the second-highest first-day trading volume after BlackRock’s low-carbon transition ETF, ‘BlackRock US Carbon Transition Readiness ETF,’ which set a record on April 8.

Positive evaluations of the Bitcoin futures ETF have continued. Anthony Bartolino, Vice President of Growth at U.S. cryptocurrency investment firm iTrustCapital, said, “The launch of the first Bitcoin-linked ETF will expand the size of the cryptocurrency market and attract new investors,” adding, “In the long term, investors will want Bitcoin spot-based ETFs.”

Market attention is also focused on upcoming Bitcoin-related ETFs. Asset management firms Valkyrie and VanEck are awaiting the SEC’s approval for their Bitcoin futures ETFs. The decision is expected within this month. Additionally, asset managers such as ARK Investment, led by CEO Cathie Wood, and Galaxy are aiming to launch Bitcoin futures ETFs within the year. However, Invesco’s Bitcoin futures ETF, which was expected to launch this month, was ultimately canceled.