HomeCryptoBTC price hovers above $61K amid fresh concerns over fate of physical...

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

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

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

Lack of religion over non-futures ETF approvals

Data 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 Street open on Friday as information hit that regulators had green-lit two ETF functions after years of failed functions.

These ETFs could have CME Bitcoin futures because the underlying asset, somewhat than Bitcoin itself, with the Securities and Exchange Commission (SEC) set to start deciding the fate of “physical” ETFs subsequent month.

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

“We are not sure if these futures-based ETFs will be able to draw enough new money to trigger an exponential move higher like the one we saw in Q4 2020,” crypto buying and selling agency QCP Capital said in its newest market replace.

“We do expect inflow from investors switching out of Gold ETFs into BTC. However, with BTC above 60k, the market capitalisation is above $1.1 trillion. It’s going to take a lot to move the needle.”

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

These, nevertheless, could also be a very long time coming, as traders pile into current Canadian and European physical 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 indirectly ruled out a physical BTC ETF in the US for the foreseeable future, investors able to access these overseas markets have decided to participate there rather than investing in the upcoming futures ETFs in the US,” QCP added.

Bitcoin futures open curiosity chart. Source: Bybt

Bulls out in drive regardless of “priced in” ETF

As Cointelegraph reported, the outlook for the remaining of 2021 nonetheless stays rosy within the eyes of analysts, with Bitcoin tipped to succeed in anyplace as much as $300,000.

Related: Bitcoin will get inexperienced gentle for price discovery with ‘almost no supply’ on exchanges above $59K

A subsequent bearish part, even on a macro scale, will possible have a flooring of at least $47,000, information suggests.

Meanwhile, institutional buying and selling agency Bakkt is ready to start buying and selling on the New York Stock Exchange subsequent week.