5 Bitcoin Developments You Need To Know About

Walmart Now Has Bitcoin ATMs? Five Bitcoin Developments from the Past Week

I want to start by addressing the recent pullback in Bitcoin and Ether prices, as well as shares of crypto miners since Bitcoin hit a new record high last week. It’s important for investors to remember that the crypto ecosystem remains, and is expected to remain, highly volatile.

Whereas gold bullion and the S&P 500 have a standard deviation of ±1% over a single trading day, Bitcoin has one closer to ±4%. Ether’s is even higher at ±6%, and HIVE Blockchain Technologies can easily go up or down 8% during any given trading session.

Needless to say, the crypto ecosystem is high-risk and potentially high-reward, and it’s essential that investors who are thinking of participating manage their expectations.

There’s much more to cover from last week that was! Below are five Bitcoin developments you need to know.

1. The first Bitcoin ETF was also the fastest to $1 billion in assets

Many of you reading this may be aware that Wall Street finally got a Bitcoin-linked ETF. The ProShares Bitcoin Strategy ETF (BITO), which tracks the performance of Bitcoin futures contracts, was first out of the gate last Monday, mere days after the Securities and Exchange Commission (SEC) said it would no longer block the issuance of investment products related to the digital asset.

But that’s not the only record BITO now holds. The ETF attracted over $1 billion in as little as two days after its debut, making it the fastest ever to reach that milestone. The previous record-holder, appropriately enough, was State Street’s SPDR Gold Shares ETF (GLD), launched in 2004. It took the popular gold-backed ETF three days to reach $1 billion in assets.

BITO may be the first, but it will hardly be the last. A second Bitcoin futures fund, the actively managed Valkyrie Bitcoin Strategy ETF (BTF), became available for trading on Friday.

Having said that, not everyone is jumping to buy a Bitcoin futures contract. Of the nearly 700 people who took a recent HIVE poll, more than three-quarters said they were either “probably” or “absolutely” not interested in an ETF that tracks the futures market. Presumably, they are holding out for a Bitcoin spot ETF, or they would prefer to own the crypto outright.

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Disclosure: The S&P 500 Stock Index is a widely recognized capitalization-weighted index of 500 common stock prices in U.S. companies. Standard deviation is a measure of the dispersion of a ...

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