Bitcoin Pushes Toward Record as Futures ETF Begins Trading

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Key Takeaways

The price of bitcoin rallies above $64,400 the day ProShares’ Bitcoin ETF debuts on the NYSE
Wall Street stocks gain as a strong earnings season bolsters investor confidence

What’s on Focus in the Markets?

Traditional markets gave a warm reception to the first-ever Bitcoin exchange-traded fund. The ProShares’ Bitcoin Strategy ETF is now part of all assets trading on the New York Stock Exchange. That said, it even rose about 5% on its first trading day to settle at $41.94.

The launch of the fund with a ticker BITO marked the first step of cryptocurrencies making their way into Wall Street. As a result, institutional investors who have been waiting to dive into cryptos are able to do so. Moreover, millions of brokerage clients now have exposure to bitcoin.

However, as bitcoin is still not regulated by the Securities and Exchange Commission, the bitcoin ETF will not hold bitcoin. Instead, it will offer bitcoin futures traded on the Chicago Mercantile Exchange (CME). Still, according to analysts, this is only the first step of many toward broader cryptocurrency adoption among traditional markets.

What’s the Price of Bitcoin Now?

The original cryptocurrency received a solid boost from the long-awaited ETF launch. Against that backdrop, the price of bitcoin rallied to a high of $64,450, its second-best price achievement. The orange coin stopped 0.5% short of reaching its all-time high of $64,800 set in mid-April.

The trading debut of BITO highlights the remarkable progress cryptocurrencies have made this year. While the ETF yesterday traded in excess of $980 million of shares, crypto circles cheer the growth of digital assets.

Collectively, the worth of the entire cryptocurrency market hovers around $2.5tn. In other words, a little over the market value of Apple, the world’s biggest company worth $2.4tn. Bitcoin, on that note, passed $1.2tn in market capitalization and is currently trading near $64,000 a coin.

Where Are Stocks Headed?

Meanwhile, stocks on Wall Street rebounded from recent jitters. The S&P500 notched its fifth day in positive territory. Moreover, both the S&P500 and the Dow Jones Industrial Average are now less than 1% away from their record highs.

On Wednesday, futures contracts tied to the major averages traded flat ahead of the bell. The calm pre-market environment arrives after stocks enjoyed substantial gains. In more detail, the tech-centered Nasdaq Composite and the broader S&P500 advanced 0.7% on Tuesday. In addition, the 30-stock Dow Jones added about 0.5% during the regular session.

Netflix Earnings Report Beats Estimates

Streaming giant Netflix reported its third-quarter earnings figures on Tuesday after the bell. The company added 4.4 million subscribers over the past quarter, beating expectations for 3.8 million. Also, it blew past earnings estimates of $2.56 a share with an actual number of $3.19 a share.

Despite the higher-than-expected financial results, shares of Netflix slipped about 1.2% in after-hours trading.

What’s Next for Traders and Investors?

Looking ahead, EV maker Tesla is slated to report its quarterly figures today, after the markets close. With that in mind, Tesla stock is up about 12% this month, trading near $865 a share.

Earlier this month, Tesla announced it delivered 241,300 electric vehicles for the quarter ended September. Wall Street expects the company to report revenue of $14bn.

In the meantime, inflation data for September will arrive from the European Union and Canada. The figures are likely to increase the volatility in the currency and commodity markets.

Today’s Economic Calendar (EST times)

05:00 am, EUR, CPI (YoY) (Sep)
08:30 am, CAD, CPI (YoY) (Sep)