[Bitcoin Now] Surpasses 66 Million Won, Hits New High... ETF Optimism Rises

Bitcoin Approaches 67 Million Won... New High in 3 Weeks
US Market Buzzes Over Potential Bitcoin ETF Launch
US Asset Manager Grayscale Suddenly Hires ETF Staff, Aiming to Seize Market Lead

On the morning of the 12th, the Bitcoin price is displayed on the Upbit Lounge cryptocurrency exchange price board in Gangnam-gu, Seoul.
[Photo by Yonhap News]

[Asia Economy Reporter Gong Byung-sun] The leading cryptocurrency Bitcoin has surged to nearly 67 million won, setting a new record high. The news that U.S. asset management firm Grayscale is attempting to launch a Bitcoin exchange-traded fund (ETF) appears to have acted as a positive catalyst.

According to the domestic cryptocurrency exchange Upbit, at 8:24 a.m. on the 12th, Bitcoin recorded 66.8 million won, up about 3.8% from the previous day. This marks a new all-time high about three weeks after the previous record set on the 20th of last month. Since then, it has slightly declined, recording about 65.9 million won as of 3 p.m.

The price increase is interpreted as a reaction to the news that Grayscale is moving forward with the Bitcoin ETF launch. On the 10th (local time), U.S. economic media Bloomberg reported that Grayscale is pushing for the launch of a Bitcoin ETF. Since 2013, Grayscale has operated the Bitcoin Investment Trust (GBTC) but had not introduced any other ETFs until now, and it has recently begun hiring ETF experts. Although Grayscale has denied plans to launch a Bitcoin ETF, the industry views this as an expected step. Todd Rosenbluth, head of ETFs at CFRA Research, said, “Asset management firms require a long decision-making process to form an ETF team,” adding, “It seems likely that Grayscale will apply for a Bitcoin ETF.”

Grayscale’s preparation for launching a Bitcoin ETF is due to the continuous decline in the value of the Bitcoin Investment Trust (GBTC). Elliott Johnson, head of ETFs at Canadian asset management firm Evolve, said on the 9th, “Consumers prefer ETFs with an open management structure over closed-end investment trusts.” Earlier in January, JP Morgan, the largest U.S. investment bank, predicted that the GBTC premium would fall once a Bitcoin ETF is launched.

Meanwhile, with Grayscale’s emergence, interest in securing a leading position in the Bitcoin ETF market on the U.S. stock market is growing. Rosenbluth, the ETF head, said, “The first-mover advantage in the Bitcoin ETF market is very significant,” adding, “With Grayscale’s participation, competition to launch Bitcoin ETFs is heating up.” Expectations for the appearance of Bitcoin ETFs on the U.S. stock market have increased since Gary Gensler, known as a Bitcoin advocate, was nominated as the next SEC chairman.

Additionally, U.S. President Joe Biden’s decision to move up the schedule and sign a $1.9 trillion (about 2,160 trillion won) stimulus package on the 11th is also seen as a positive factor. The passage of the stimulus package could lead to a weaker dollar, making Bitcoin a hedge against potential losses. On the 7th, George Ball, chairman of U.S. asset management firm Sanders Morris Harris, said, “There is no eternal stimulus,” and “If inflation occurs, the value of cryptocurrencies will rise significantly.”

This content was produced with the assistance of AI translation services.