What Is Fueling The Rise Of Bitcoin Beyond The Bitcoin Futures ETF Listing?

Bitcoin BTC/USD is making new all-time highs following the listing of the first Bitcoin futures ETF, but that's not the only reason Bitcoin is surging Wednesday, according to BTIG analyst Mark Palmer.

Bitcoin: A Safe Haven? "If you look at Bitcoin in the broader context of cryptocurrencies, in a sense it's become a safe haven," Palmer said Wednesday on CNBC's "Squawk On The Street."

Bitcoin has received favorable views from U.S. regulators, while many other cryptocurrencies have not been so lucky, Palmer said. 

"Bitcoin has been essentially blessed by regulators as a non-security. And as such, it doesn't face the same challenges that the so-called altcoins  other cryptocurrency tokens —  could face."

SEC chairman Gary Gensler has made it clear that most of the tokens that trade on exchanges are securities, Palmer said: "So Bitcoin has its own special status within the cryptocurrency ecosystem and I think that that's definitely helping it here."

See Also: New All Time High For Bitcoin - BTC 66K

How To Play The Rise Of Crypto: Although Palmer acknowledged that the newly-listed Bitcoin futures ETF, ProShares Bitcoin Strategy ETF (ARCA:  BITO) has served as a catalyst for Bitcoin's recent run, he warned that investors should not view the futures ETF as an investment vehicle.

"I don't think that any individual investor, particularly a retail investor, should be looking at the Bitcoin futures ETF as an investment vehicle. You know the reality is that given the fact that you do have these very significant roll costs associated with this, the futures ETF could significantly underperform."

Palmer "strongly recommend[s]" that investors either buy Bitcoin itself or invest in shares of MicroStrategy Inc MSTR, which he thinks offers an "attractive way to play Bitcoin."

Microstrategy is a business intelligence company that holds approximately 114,000 BTC on its balance sheet. 

Regardless of how investors choose to play Bitcoin, Palmer expects significant volatility in the crypto markets as the extent to which crypto will be regulated unfolds.

BTC Price Action: Bitcoin was up 5.22% at $66,452.50 over a 24-hour period as of publication Wednesday.

Photo: 5933179 from Pixabay.