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Bitcoin was trading around $64,000 as of Wednesday afternoon in the United States, after rising above $65,000 earlier in the day.
Digital asset manager Bitwise’s investment note says ether is set to reach new all-time highs after spot ether ETF listings are expected to begin soon.
The U.S. spot Bitcoin ETF market saw its biggest inflow day since June 5 on Tuesday, with $422.5 million.
Grayscale has introduced a fund that includes a basket of crypto tokens focused on decentralized artificial intelligence.
Bitcoin (BTC) has continued its positive price action this week, briefly breaking above $65,000 on Wednesday. The cryptocurrency asset is up nearly 12% since Friday, as crypto-friendly candidate Donald Trump’s chances of re-election improve and the U.S. Securities and Exchange Commission (SEC) is looming over approval of spot ether (ETH) exchange-traded funds (ETFs).
Launch of Spot Ether ETFs Seems to Boost Ether Price
Listing spot ether ETFs could send the underlying cryptocurrency Ethereum above $5,000 to a new all-time high, digital asset manager Bitwise chief investment officer Matt Hougan wrote in a new investment note.
According to Hougan, this price increase will be partially due to the approximately 28% of the total ether supply that will not be available to these future ETFs due to being staked on the Ethereum network. This means that the assets are tied to a contract for a certain period of time and cannot be withdrawn or sold. The ether held by the upcoming ETFs will not be staked, at least for now.
Hougan adds that the price of ether may be volatile at first, but he predicts new all-time highs for ETH by the end of the year. Hougan has previously stated that he believes spot ether ETFs will see $15 billion in inflows over the next year and a half.
Spot Bitcoin ETF Inflows Continue to Strengthen
On the bitcoin side, inflows into U.S. spot bitcoin ETFs haven’t slowed down — they were larger on Tuesday than on any day in the past two months. According to Farside Investors, $422.5 million entered these new financial products on Tuesday, the largest single-day amount since June 5. Combined with Monday’s numbers, $723.4 million has entered spot bitcoin ETFs this week.
Grayscale, the digital asset manager that operates the second-largest spot bitcoin ETF (GBTC), announced the launch of its newest private placement investment product on Wednesday: the Grayscale Decentralized AI Fund, which holds crypto tokens operating in the decentralized artificial intelligence (AI) space.
The fund will be updated and rebalanced quarterly and currently includes AI crypto protocols Bittensor (TAO), Filecoin (FIL), Livepeer (LPT), Near (NEAR), and Render (RNDR).
Read the original article on Investopedia.