Due to new concerns about the fate of physical Bitcoin ETFs, the BTC price hovered above $61,000

Bitcoin (Bitcoin) There was a rare calm on October 16, as the market continued to digest the approval of the first exchange-traded fund (ETF) in the United States.

BTC/USD 1-hour candlestick chart (Bitstamp). Source: TradingView

Lack of confidence in the approval of non-futures ETFs

Data from Cointelegraph Markets Pro with Transaction view BTC/USD hovered at US$61,500 on Saturday, still rising 4% within 24 hours.

After the opening of Wall Street on Friday, the currency pair touched US$62,940 because there was news that the regulator had Green light After years of failed applications, there were two ETF applications.

These ETFs will use CME Bitcoin futures as the underlying asset, rather than Bitcoin itself. The Securities and Exchange Commission (SEC) will begin to determine the fate of “physical” ETFs next month.

The acceptance of futures-based ETFs varies greatly, and opinions on their market impact and the overall impact on Bitcoin’s price trend are very different.

“We are not sure whether these futures-based ETFs can attract enough new funds to trigger the exponential rise we saw in the fourth quarter of 2020,” said crypto trading company QCP Capital in its latest market update.

“We do expect investors to switch from gold ETFs to BTC. However, as BTC exceeds $60,000, its market value exceeds $1.1 trillion. It will take a lot of time to drive this trend.”

QCP pointed out that the nature of futures ETFs means that these products may be more attractive to retail rather than institutional investors, so the largest share of potential capital inflows into Bitcoin is therefore reserved for physical products.

However, these may take a long time to materialize, as investors are pouring into existing Canadian and European physical Bitcoin ETFs instead of waiting for the potential transformation of the SEC and its new chairman Gary Gensler.

“We suspect that after the US Securities and Exchange Commission Chairman Gensler indirectly ruled out the possibility of US physical BTC ETFs in the foreseeable future, investors who can enter these overseas markets decide to participate instead of investing in the upcoming futures ETFs in the US ,” QCP added. .

Bitcoin futures open interest chart. Source: Bybt

Despite “pricing” ETFs, long positions are still valid

As Cointelegraph ReportNevertheless, analysts believe that the outlook for the rest of 2021 is still optimistic, with Bitcoin expected to reach $300,000.

related: Bitcoin exchanges above $59,000 have “almost no supply”, giving the green light to price discovery

The subsequent bearish phase, even in the macro range, may have a bottom Not less than 47,000 USD,as shown by data.

At the same time, the institutional trading company Bakkt will Start trading It will be listed on the New York Stock Exchange next week.