Bitcoin had a very good morning on Wednesday after its value reached a new peak, only one day after the launch of the first exchange traded fund (ETF). At the start of the day, Bitcoin notched an opening value of $65,607.92, 2% higher than its previous highest amount from April.

Excitement for the ETF was palpable on Tuesday as investors gathered at the New York Stock Exchange to witness its launch. Ahead of the announcement, the value of Bitcoin futures contracts rose over 4% and the day was reportedly dominated by activity from high frequency traders and smaller investors, according to Reuters. It added that institutional investors appeared to be taking a backseat for now, in the immediate aftermath of the launch.

Bitcoin and other cryptocurrencies have reached this point in spite of the scrutiny that has been aimed at it.

Last week, Jamie Dimon, the chief executive officer of the largest U.S. investment bank JP Morgan, dismissed cryptocurrencies as "worthless." Dimon has never been much of a convert on cryptocurrencies, justifying his cautiousness by pointing to a future where its unregulated nature in the present will come under increasing regulation.

Dimon, despite his skepticism, has still allowed trading in cryptocurrencies to take place at JP Morgan. In 2019, the bank launched its own digital currency called JPM Coin and it has added a dedicated unit that would handle cryptocurrency transactions and investments.

The U.S. government has taken a more scrutinizing stance toward cryptocurrency. The White House has been mulling whether or not to direct federal regulators to tighten supervision of the market, particularly over its concerns about how digital money is used by cybercriminals.

The Securities and Exchange Commission (SEC) has waded into the debate over crypto. In August, SEC Chairman Gary Gensler called on Congress for more powers to regulate cryptocurrency transactions and scrutiny from it has rankled some players in the industry.

However, the SEC allowed the Volt Bitcoin ETF, which indirectly participates in crypto trades only, to go ahead with its launch in October. It also did not go out of its way to stop yesterday’s ETF from entering into operation and granted approval for its launch.

RELATED STORIES
Bitcoin