Wednesday, August 10, 2022

BTC price hovers above $61K amid fresh concerns over fate of physical Bitcoin ETF


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Bitcoin (BTC) noticed some uncommon calm on Oct. 16 because the market continued to digest the approval of the US’ first exchange-traded funds (ETFs).

BTC/USD 1-hour candle chart (Bitstamp). Supply: TradingView

Lack of religion over non-futures ETF approvals

Information from Cointelegraph Markets Pro and TradingView confirmed BTC/USD circling $61,500 on Saturday, nonetheless up by 4% in 24 hours. 

The pair had hit $62,940 hours after the Wall Road open on Friday as information hit that regulators had green-lit two ETF functions after years of failed functions.

These ETFs can have CME Bitcoin futures because the underlying asset, relatively than Bitcoin itself, with the Securities and Alternate Fee (SEC) set to start deciding the destiny of “bodily” ETFs subsequent month.

Futures-based ETFs have had a blended reception, with opinions various significantly on their market affect and total impact on Bitcoin worth motion.

“We aren’t certain if these futures-based ETFs will be capable to draw sufficient new cash to set off an exponential transfer larger just like the one we noticed in This autumn 2020,” crypto buying and selling agency QCP Capital acknowledged in its newest market replace.

“We do anticipate influx from traders switching out of Gold ETFs into BTC. Nevertheless, with BTC above 60k, the market capitalisation is above $1.1 trillion. It’s going to take lots to maneuver the needle.”

QCP identified that the character of futures ETFs meant that the merchandise would probably enchantment extra to retail relatively than institutional traders, with the lion’s share of potential capital influx into Bitcoin thus reserved for bodily merchandise.

These, nonetheless, could also be a very long time coming, as traders pile into current Canadian and European bodily Bitcoin ETFs as an alternative of ready for a possible change of play from the SEC and its new Chair, Gary Gensler.

“We suspect that after SEC Chair Gensler not directly dominated out a bodily BTC ETF within the US for the foreseeable future, traders in a position to entry these abroad markets have determined to take part there relatively than investing within the upcoming futures ETFs within the US,” QCP added.

Bitcoin futures open curiosity chart. Supply: Bybt

Bulls out in power regardless of “priced in” ETF

As Cointelegraph reported, the outlook for the rest of 2021 nonetheless remains rosy within the eyes of analysts, with Bitcoin tipped to achieve anyplace as much as $300,000.

Associated: Bitcoin gets green light for price discovery with ‘almost no supply’ on exchanges above $59K

A subsequent bearish section, even on a macro scale, will probably have a flooring of no less than $47,000, information suggests.

In the meantime, institutional buying and selling agency Bakkt is ready to begin buying and selling on the New York Inventory Alternate subsequent week.