By Samuel Indyk
Investing.com – The price of Bitcoin remained just below its all-time high on Wednesday after Tuesday’s successful debut of the first US Bitcoin Futures ETF. The ProShares Bitcoin Strategy ETF (NYSE:BITO) closed higher on its debut and saw trading volume of around $1 billion. Over 24 million shares were traded according to Bloomberg data, making it the second-most heavily traded fund on its opening day of all time.
Bitcoin Price
On some exchanges Bitcoin breached its intraday record price while others had the world’s largest cryptocurrency trading just below its all-time high.
For now, a breach of the all-time high and then $65,000 will be the next major hurdle to overcome before another leg higher could be observed.
But despite struggling to exceed its previous record, Bitcoin also hasn’t faced a correction like some analysts had predicted in a “buy the rumour, sell the fact” scenario.
For now, Bitcoin remains magnetised around $64,000 and it is still unclear whether the next major move will be higher or lower.
Looking at historical price action around similar key events would suggest Bitcoin could face a correction in the coming weeks. Previously the Bitcoin price has rallied into anticipation of a major event before falling.
For example, when Bitcoin futures were launched on the CME in 2017, Bitcoin had rallied in price before a correction saw its price drop when the futures product was launched. Similar price action was observed this year when the cryptocurrency exchange Coinbase (NASDAQ:COIN) had its IPO.
Other Bitcoin Futures ETFs on the horizon
Although ProShares was first to market, there are other Bitcoin Futures ETFs that could be launching soon.
Some analysts expect Valkyrie’s Bitcoin Strategy ETF to be next to gain approval, which is expected to trade with the ticker ‘BTFD’, a mantra used by retail traders to buy after a correction in the price.