Bitcoin based ETF? BTC reacts by getting closer to ATH

Bitcoin surged up last week, coming back to an all-time high (ATH) as investors embraced the news of a new bitcoin-backed ETF.

After confirmation by the US Securities and Exchange Commission (SEC) Bitcoin-based ETF (more below), the price started to rise. After a low of $ 54 on Wednesday, BTC soared 611 percent to a high of $ 14. As of this writing, the cryptocurrency costs approximately $ 62.

BTC trading brings it closer to the previous ATH - $ 63 - set on April 569 this year. Investors will now closely monitor whether the dynamics allowing to exceed this threshold will be maintained at the beginning of this week.

In the meantime Ethereum recorded similar gains, although still slightly further from its previous ATH. The price of ETH on Monday was just $ 3, before rising to a high of $ 419 during the week. The previous ETH record was recorded on May 3, when it reached $ 957. It currently costs around $ 12.

Tip for a bitcoin ETF from Grayscale

Cryptocurrency management company Grayscale said it plans to transform its fund into a stock exchange fund (ETF). While this was not confirmed at the time of writing, CEO Barry Silbert did suggest in a two-word tweetthat the company may soon convert its fund into an ETF structure. The thread came up when the CEO criticized bitcoin-backed ETFs backed by futures, saying, "Friends don't let their friends buy and hold futures-backed ETFs."

The thread came after the approval of the ProShares ETF - a bitcoin futures fund. The announcement raised the price of bitcoin as investors see regulator support for cryptocurrency-backed funds as an endorsement to their business.

Putin approves crypto

Russian President Vladimir Putin has presented a relatively delicate position on cryptocurrencies. The Russian leader, known for his lack of enthusiasm about cryptocurrencies, spoke with CNBC last Thursday ambivalent about cryptocurrencies. Putin said in an interview that the cryptocurrency:

"It has the right to exist and can be used as a means of payment."

He also added that it was too early to discuss the idea of ​​trading oil and other commodities via cryptocurrencies, which make up a large part of the Russian export base. Putin's relative penchant for cryptocurrencies likely arises as Russia struggles to access international capital in the form of US dollars. The Eurasian nation has been hit by sanctions since its invasion of Crimea in 2014.

ARK Invest Endorses Bitcoin Based ETF 

The company founded by Cathie Wood, Ark Invest, endorsed a bitcoin futures-based fund by putting the company's name in the fund. The Bitcoin futures ETF that was submitted for approval to the US Securities and Exchange Commission last Wednesday will be called ARK 21Shares Bitcoin Futures Strategy ETF, with the designation ARKA.

The ETF was submitted by Alpha Architect and uses 21Shares as an investment advisor. The role of ARK in the ETF will be to provide the marketing support itself, in line with the submitted application.

Wood's ARK is best known for its ground-breaking, innovation-focused ETFs. The company struggled with an estimated $ 2021 billion in assets under management (AUM) in 8. ARK joins a growing list of asset managers looking to offer a bitcoin-based ETF - currently more than 12 Wall Street companies are now looking to offer such a product to their clients.