BREAKING: Bitcoin breaks $49,000 – new all-time high! What are the chances for $50k?
Bitcoin has managed to briefly rise to $49,000 in the last few hours – a new all-time high.
What triggered the rise? Speculation is that news from companies may have had an effect. This Bitcoin Bank ranges from North America’s first bitcoin exchange-traded fund, which launched in Canada on 11 February, to a Bloomberg report claiming that Morgan Stanley’s $150 billion arm Counterpoint Global is considering a move into bitcoin.
Bitcoin news flow in recent days has been serious – in a good way. On 8 February, it was announced that Grayscale had added Bitcoin (Bitcoin to $100,000 by 2022?) to its Grayscale Bitcoin Trust in January, to the tune of 150% of BTC mined that month.
On 11 February, Grayscale tweeted a chart showing their holdings. GBTC now holds over $30 billion of BTC under management. According to Bybt, Grayscale owns 653,830 BTC.
The Holy Grail – in Canada
Grayscale gained notoriety because it offered institutional investors a way to invest indirectly in BTC. Because GBTC and Grayscale’s altcoin offerings are not traded on a market, they are regulated differently than those that are.
However, American institutional investors looking to buy bitcoins have been clamouring for an exchange-traded fund (ETF). An application by Gemini Trust in 2017 was rejected by the Securities and Exchange Commission because of the immaturity of the Bitcoin market.
This was the first of many such rejections by the SEC – unfortunately for professional traders.
On 11 February, the Purpose Bitcoin Fund launched in Canada. This fund is the first Bitcoin ETF in North America and is traded on the Toronto Stock Exchange. In addition, Gemini Trust is the sub-trustee responsible for holdings outside Canada.
Purpose Investments is the first – but the likelihood of the SEC continuing to reject ETFs in the US is unlikely. Valkyrie Fund applied for an ETF in January 2021, and the pressure is now on the SEC to approve the fund.
Such an OK would allow even more institutional investors to take exposure to BTC.
Morgan Stanley – in Bitcoin
Bloomberg reported on 13 February that Morgan Stanley is considering entering the BTC market, according to its sources. The investment giant’s $150 billion „Counterpoint Global“ would take the investment.
However, the move requires both regulatory approval and an OK from its corporate parent. If Morgan Stanley puts its seal of approval on a Counterpoint Global entry, BTC at $50,000 is just the beginning.