Bitcoin (BTC) Hits New All-Time High Above $51,700 As NYDIG files For New Bitcoin ETF

17. Feb 2021 Posted by Akolkar B on News

The world’s largest cryptocurrency Bitcoin (BTC) is currently on an unstoppable journey! Today, Bitcoin surged another 5% hitting its new all-time high moving past $51,700 levels as per data on WorldCoinIndex.

With this, Bitcoin has crossed an important milestone of $950 billion market cap and is just short of becoming the first trillion-dollar asset class. Bitcoin has already gained around 70% year-to-date.

The latest Bitcoin price rally comes soon after the New York Digital Investment Group (NYDIG) filed for a Bitcoin ETF with the U.S. Securities and Exchange Commission on Tuesday, February 16.

In the filing, NYDIG said that the shares of its Bitcoin ETF will trade on the New York Stock Exchange (NYSE). Also, the Form S1 registration statement states that NYDIG Trust Company LLC will serve as the custodian of the Bitcoin exchange-traded-fund (ETF).

Besides, banking giant Morgan Stanley has been announced as the authorized participant  who will be responsible to sell shares to the public at prices reflecting the fund’s assets, supply, and demand, along with other underlying conditions.

The filing states: “The Trust’s investment objective is to reflect the performance of the price of bitcoin less the expenses of the Trust’s operations. The Trust will not seek to reflect the performance of any benchmark or index. “In seeking to achieve its investment objective, the Trust will hold bitcoin. The Trust will value its assets daily in accordance with Generally Accepted Accounting Principles, which generally value bitcoin by reference to orderly transactions in the principal active market for bitcoin.”

The U.S. SEC has rejected multiple applications in the past for the Bitcoin ETF. However, analysts think that massive institutional participation over last few months will help bring the regulators closer to ETH approval.

Over the last week, Bitcoin has surged over 25% in a short time-period after Tesla’s $1.5 BTC purchase. As the Bitcoin price hits new all-time highs, banking giant JPMorgan said that the existing BTC price is unsustainable.

In a note to clients, JPMorgan said: "In our opinion, unless bitcoin volatility subsides quickly from here, its current price… looks unsustainable. Some pickup in real money flows would likely be needed to sustain current prices in the absence of a re-acceleration of the retail flow,” they added.