On Monday, CNBC’s Jim Cramer attributed a near-term top to crypto markets to the impending launch of ProShares, which is poised to become the first Bitcoin futures exchange traded fund in the US, CNBC reported. The “Mad Money” host decided to cut back on his ether holdings although the price of Ethereum (ETH/USD) is increasing. He said:
Cryptocurrencies, they’ve become unstoppable, and even as someone who likes them, I think they’ve become the definition of rank speculation. You could argue they’re roaring because people want insurance against inflation, but I think they’re roaring because a crypto ETF is launching and people want in ahead of time. If I’m right, then tomorrow (Tuesday, October 19, 2021) very well could be the peak for crypto, and that’s why I sold off one-eighth of my Ethereum position today.
Last week, the market commentator indicated he might sell some ether holdings if a Bitcoin-related ETF were to start trading, but yesterday’s comments offer insight into his specific trading decision.
Ether has been rallying in recent months
Ethereum’s token has been on a strong ascent in recent months. It was changing hands for above $4,000 in mid-May. At the end of July, it had dropped below $1,800. At the time of writing, it’s trading at $3,807. Since its launch, Ether is up roughly 400%. Bitcoin (BTC/USD), the world’s largest cryptocurrency by market value, is trading at $62,238 at the time of writing.
First Bitcoin ETF starts trading today
The first Bitcoin-linked ETF, ProShares, will track the Bitcoin futures market and start trading on the NYSE under the ticker “BITO” today, ProShares confirmed. ProShares CEO Michael L. Sapir said:
We believe a multitude of investors have been eagerly awaiting the launch of a bitcoin-linked ETF after years of efforts to launch one. BITO will open up exposure to bitcoin to a large segment of investors who have a brokerage account and are comfortable buying stocks and ETFs, but do not desire to go through the hassle and learning curve of establishing another account with a cryptocurrency provider … or are concerned that these providers may be unregulated and subject to security risks.
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