Bitcoin (Bitcoin) Returned to a four-month high on October 8, climbing to $2,000 within two hours.
BTC price breaks through Wednesday’s high
Data from Cointelegraph Markets Pro with Transaction view It shows that BTC/USD has reached a new bullish momentum slightly above US$56,150 on Bitstamp.
The dramatic rise on Wednesday reached a peak of $55,800, which is still the level that the currency pair spent on Thursday to beat Consolidate.
I think we have another Bitcoin The pump is coming soon.
A cruel, if I must say.
-Galaxy (@galaxyBTC) October 7, 2021
In anticipation of new upside for traders, discussions other than price action continue to focus on the possibility and impact of US regulators approving exchange-traded funds (ETFs).
As Cointelegraph Report, There is high confidence that futures-backed Bitcoin ETFs will be approved this month, even if they are not traditional spot-based products.
However, as has been the case for years of struggling to obtain such approvals, critics continue to argue that ETFs may ultimately do more harm than good to Bitcoin. In particular, futures are under scrutiny this week.
Macro analyst Alex Kruger explained in a report: “Very few people understand this Bitcoin ETF, and if approved, it will be based on futures.” Twitter topic.
“Futures are usually in a strong positive spread (i.e. futures> spot), so during the rollover, the ETF will *sell low and buy high* and suffer from Contango Bleed. Assets with strong Contango bleed tend to go down.”
Kruger Add to Spot-based ETFs will be the only option that is attractive to a large number of institutional clients because futures-based alternatives are too risky.
Different views on ETF earnings
Analyst Willy Woo also emphasized the overall pros and cons of the two ETFs.
related: Price surge: Did the whale preemptively approve the Bitcoin futures ETF?
In my opinion, in addition to the initial influence, the best thing about ETFs is that they may prevent the unit deviation problem of BTC.
Long-term negative effects:
Spot ETF-increased selling pressure from fees.
Futures ETF-due to the dominance of futures, it may suppress prices and increase volatility.— Willy Woo (@woonomic) October 8, 2021
Commentators believe that Grayscale Bitcoin Trust, whose fate has been affected by the expected ETF approval, continues to see a negative share price relative to the spot, which passed -17% on Thursday.
The company’s CEO Michael Sonnenshein reiterated plans to convert each fund into an ETF in the future.
