In a significant development during Monday's Asian trading session, the price of Bitcoin (BTC) surged past the $71,000 mark for the first time, according to data from CoinMarketCap. At the time of reporting, BTC reached $71,410.77, while on the Indian exchange WazirX, it peaked at approximately Rs 61 lakh.
This milestone follows Bitcoin's recent upward trend, which gained momentum after the approval of spot Bitcoin exchange-traded funds (ETFs) in the United States. Just last week, the cryptocurrency surpassed $70,000 for the first time in its history.
The surge in Bitcoin's value has led to a notable increase in the annualized three-month futures premium on major exchanges like Binance, currently standing at over 25%. This rise in premium is expected to attract cash and carry traders, thereby boosting overall market liquidity.
The continuous rise in Bitcoin's value reflects increasing mainstream acceptance and investor confidence in cryptocurrencies, especially Bitcoin, as a viable investment asset. Despite ongoing market volatility, experts maintain cautious optimism regarding its future trajectory.
Bitcoin Exchange-Traded Funds (ETFs) operate by holding physical Bitcoin or Bitcoin derivatives, providing investors with a more accessible way to participate in the cryptocurrency market.
One of the main advantages of Bitcoin ETFs is their accessibility, offering investors exposure to the digital asset through familiar investment platforms, unlike traditional methods of acquiring Bitcoin.
Moreover, Bitcoin ETFs offer enhanced liquidity compared to individual Bitcoin holdings, allowing investors to buy and sell shares easily on established exchanges, potentially alleviating some of the liquidity concerns associated with direct Bitcoin ownership.
