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Bitcoin is hovering near a high; Doubts persist about fund drive in the US

By Tom Wilson and Alun John

LONDON / HONG KONG, Oct 21 (Reuters) – Bitcoin hovered below the all-time high hit a day after the launch of the first exchange-traded fund (ETF) based on cryptocurrency futures in the United States on Thursday, although analysts at JP Morgan expressed doubts about its impact on investment flow.

* The world’s largest cryptocurrency was stable at $ 66,032, erasing the slight gains obtained in the Asian session, after hitting a record of $ 67,016 the day before.

* Bitcoin’s advance to its latest peak – six months after its previous high of $ 64,895 – was fueled by the launch of the ProShares Bitcoin Strategy ETF. Investors are betting that this will pave the way for more funding from retailers and institutions.

* However, some analysts at large banks expressed doubts about how long the push in bitcoin prices will last in the ETF.

* “Will the launch of BITO by itself succeed in injecting significant new capital into Bitcoin? We doubt this, given the multitude of investment options Bitcoin investors already have,” JP Morgan analysts wrote in a note.

* “Bulls see this ETF as a new investment vehicle that would open an avenue for new capital to enter the bitcoin markets. Bears see the new ETF as just one more addition to an already packed space of investment vehicles in the world. bitcoin, “he added.

* Ether, the world’s second-largest cryptocurrency, was up 1% at $ 4,203, close to the all-time high of $ 4,380 hit in May.

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