Skip to main content
Publish date:

Cryptocurrency Price Check: Bitcoin Climbs, Invesco Bails on Futures Product

Bitcoin rises as the ProShares Bitcoin Strategy ETF is set to begin trading on the NYSE.

Cryptocurrency prices were mostly higher Tuesday as the ProShares Bitcoin Strategy ETF was set to begin trading on the New York Stock Exchange, while Invesco said it was scrapping plans for a bitcoin futures product.

Bitcoin, the top cryptocurrency by market capitalization, was up 3.2% at $62,257, according to CoinDesk, ahead of the listing of the first futures-based bitcoin exchange-traded fund in the U.S.

LIVE BLOG: Bitcoin ETF Launch Day Is Here!

Ether, the world’s second-biggest digital currency, was up 2.9% at $3,809.

Meanwhile, Invesco told Bloomberg that it has "...determined not to pursue the launch of a bitcoin futures ETF in the immediate near-term."

The money management firm added that it will continue to work with Galaxy Digital "...to offer investors a full shelf of products with exposure to this transformative asset class, including pursuing a physically backed, digital asset ETF,” the statement said.

Separately, Facebook  (FB) - Get Facebook, Inc. Class A Report said Tuesday that it picked Coinbase Global  (COIN)  as its custody partner for its pilot of Novi, a new digital wallet.

Zak Killermann, fintech and crytpo expert with Finder said that the total cryptocurrency market cap recently topped $2.5 trillion, placing its total market cap value above the likes of Apple  (AAPL) - Get Apple Inc. (AAPL) Report, Microsoft  (MSFT) - Get Microsoft Corporation (MSFT) Report and Saudi Aramco.

TheStreet Recommends

"Tesla makes the top 10 of most valuable companies by market cap, and thanks to its $1.5 billion investment earlier in the year, it added an extra billion to its value with BTC’s recent recapture of $60,000," Killermann said.

The issue of regulation looms over cryptocurrencies, and David Lesperance, managing partner of immigration and tax adviser Lesperance & Associates, said "the question is not whether the U.S. will bring in wide sweeping regulation, it's whether they will do it quickly by Executive Order or wait for Congress to bring in new laws.

"Like watching developing hurricane reports, those crypto 'picks and shovels' founders who may run afoul of new regulation better be prepared to protect their business and themselves when that regulation storm comes ashore," Lesperance said.

Cryptocurrency owners, he added, "need to also consider the impact of incoming regulation on the volatility of specific coins…..especially stable coins." 

Winston Ma, a former managing director and head of North America at China Investment Corp., said that this week's meeting of the Financial Stability Oversight Council is worth watching because it will cover the report by the President’s Working Group on Financial Markets regarding stablecoins. 

"The U.S. regulators are expected to develop bank-like regulation and supervision of stablecoin issuers," said Ma, author of "The Digital War - How China’s Tech Power Shapes the Future of AI, Blockchain and Cyberspace."

Ma noted that on July 16, U.S. Treasury Secretary Janet Yellen called on the President's Working Group to develop a regulatory framework for cryptocurrencies. 

He said that it may be a coincidence, but on the same day, the People’s Bank of China issued a white paper on its development of China’s digital currency (e-CNY), where the PBoC cited the rapid growth in cryptocurrencies, especially global stablecoins, as a driver for its research and development of e-CNY.

"The U.S. and China don’t agree on much these days," Ma said. "But there’s one issue on which both superpowers see eye to eye: the regulation of stablecoins."