The BTC price reached $56,000 because the bulls returned and the discussion focused on the approval of the Bitcoin ETF


Bitcoin (Bitcoin) Returned to a four-month high on October 8, climbing to $2,000 within two hours.

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

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.

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?

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.