Bitcoin (BTC) saw an unusual calm on October 16 as the market continued to absorb the approval of America's first exchange-traded funds (ETFs).
Lack of faith in ETF approvals that are not future
Data of Cointelegraph Markets Pro and TradingView it showed BTC / USD circulating in a circle of $ 61,500 on Saturday, still up 4% in 24 hours.
The pair had hit $ 62,940 hours after the Wall Street open on Friday when news came that regulators had lit green two ETF applications after years of failed applications.
These ETFs will have futures of CME Bitcoin as the underlying asset, rather than Bitcoin itself, with the Securities and Exchange Commission (SEC) set to begin deciding the fate of "physical" ETFs next month.
Futures-based ETFs have had a mixed reception, with opinions varying considerably on their impact on the market and the overall effect on Bitcoin's price action.
"We are not sure whether these futures-based ETFs will be able to attract enough new money to trigger an exponential upward movement like the one we saw in Q4 2020," stated crypto trading firm QCP Capital in its latest update. From the market.
"We expect an influx of investors switching from gold ETFs to BTC. However, with BTC above 60k, the market cap is above $ 1.1 trillion. It will take a lot to move the needle."
QCP noted that the nature of futures ETFs meant that the products would likely attract more retail investors than institutional investors, with most of the potential capital inflow into Bitcoin therefore reserved for physical products.
However, this can take a long time to come, as investors are piling up into existing Canadian and European physical Bitcoin ETFs rather than waiting for a possible game changer from the SEC and its new chairman, Gary Gensler.
"We suspect that after SEC Chairman Gensler indirectly ruled out a physical BTC ETF in the US. For the foreseeable future, investors who can access these foreign markets have decided to participate there rather than invest in. the upcoming futures ETFs in the US, "added QCP. .
Bulls in force despite "listing on" ETF
As Cointelegraph reportedNonetheless, the outlook for the remainder of 2021 remains optimistic in the eyes of analysts, with Bitcoin leaning toward $ 300,000.
Related: Bitcoin receives green light for price discovery with 'almost no supply' on exchanges above $ 59K
A subsequent bearish phase, even on a macro scale, will likely have a bottom of not less than $ 47,000, the data suggests.
One day a #BTC The bear market is coming
But today is not that day$ BTC #Crypto #Bitcoin
- Rekt Capital (@rektcapital) October 16, 2021
Meanwhile, institutional trading firm Bakkt is ready to start trading on the New York Stock Exchange next week.
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