Bitcoin Proxy Stocks Surge in Cryptocurrency Feeding Frenzy
(Bloomberg) -- Investors can’t seem to get enough of all things crypto.
A day after the successful start of bitcoin futures trading, companies often seen as a safer alternative to investing directly in the cryptocurrency are on a tear. Riot Blockchain Inc. surged 33 percent and the Bitcoin Investment Trust climbed 15 percent. Overstock.com Inc. and MGT Capital Investments Inc. also advanced.
The rallies follow a widespread selloff in the same equities in the run-up to the debut of bitcoin futures that investors speculated would reduce demand for proxies. So far, that hasn’t materialized, as Cboe World Markets Inc.’s successful start of the derivatives contracts has only heightened interest in virtually all crypto assets.
Ether and litecoin, the second and fourth biggest cryptocurrencies, surged to records Tuesday on optimism that bitcoin futures will attract institutions to the fledgling market. Bitcoin spot prices fluctuated near $17,000, according to Bloomberg composite pricing.
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