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The NYSE’s First Crypto ETF Makes Its Market Debut, GBPUSD Reaches 1-Month High & S&P 500 Rises for 5th Consecutive Day

Bitcoin ETF rises on its market debut, Grayscale BTC plans to convert

La SEC recibió dos ofertas de Bitcoin ETF - The Cryptocurrency Post

Bitcoin prices were trading close to all-time highs on Tuesday, as the NYSE’s first crypto ETF made its market debut.

The ProShares Bitcoin ETF debuted in the session, trading under the ticker BITO on the New York Stock Exchange.

💡 ProShares, making bitcoin available to the masses
“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,” ProShares CEO Michael Sapir said.

BTCUSD rose to an intraday high of $63,198 earlier on Tuesday, which is its highest price in the last 6-months.

Newly listed BITO was also higher, trading up by as much as 5.3%, hitting a high of $42.15 in the process.

Recently expectations of Bitcoin ETFs have sent prices surging in recent weeks, many now wait to see if these rallies will continue in upcoming days.

In response to the ProShares ETF debut, the Grayscale Bitcoin Trust announced plans to convert to an ETF structure.  It is anticipated that other ETF’s and investment vehicles will follow the launch of BITO.

GBPUSD climbs to 1-month high

In currency markets, GBPUSD rose to its highest level in the last 4-weeks, as traders continued to anticipate action from the Bank of England.

Cabled rallied to start the week, as BOE Governor Andrew Bailey, commented that the bank would, “have to act”, to combat rising consumer prices.

As a result, GBPUSD bulls doubled down on Monday’s long positions, taking the pair to an intraday high of 1.3833.

💡 How the BoE affects the value of the pound
The Bank of England can affect the value of the Pound through changes in interest rate expectations. Traders should understand that currencies appreciate when interest rate expectations increase, not just from increases in the nominal interest rate.

This is the general principle for how interest rates affect the Pound and stock market, although they sometimes react differently:
Higher interest rate expectations increase the strength of the Pound (GBP) and negatively affect equity values.
Lower interest rate expectations decrease the strength of the Pound (GBP) and positively affect equity values.

Tuesday’s high was the highest rates have traded at since September 16th, as traders prepare for a rate hike next month.

If the bank does move forward with this, the BoE will become the first major central bank to increase rates since the beginning of the pandemic. 

S&P 500 higher, despite U.S. housing starts falling

 The benchmark S&P 500 rose for the fifth consecutive session on Tuesday, despite data from the U.S. showing that housing starts had slipped.

Figures from the Commerce Department showed that starts dropped by 1.6% to 1.55 million units in September.

Last month’s number was the lowest level since April, and comes as data for August was also revised, showing 1.58 million starts, after being previously reported at 1.61 million.

As of writing, the S&P 500 was trading 0.67% higher, with the NASDAQ and Dow Jones up 0.67% and 0.46% respectively.

Gold prices remained volatile, moving by as much as $15 in Tuesday’s session

“Never, ever argue with your trading system”

– Michael Covel

Eliman Dambell

Senior Market Analyst