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


The market continued to absorb the approval of the US’ first exchange-traded funds (ETFs) on Oct. 16. Meanwhile, Bitcoin (BTC) saw some unusual quiet (ETFs).

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

Lack of confidence in the acceptance of non-futures ETFs

On Saturday, BTC/USD was hovering at $61,500, up 4% in 24 hours, according to data.

The pair touched $62,940 just after Wall Street opened on Friday. When word broke that authorities had approved two ETF applications following years of rejection.

With the Securities and Exchange Commission (SEC) ready to begin deciding the destiny of “physical” ETFs next month, these ETFs will use CME Bitcoin futures as the underlying asset, rather than Bitcoin itself.

Futures-based ETFs have received a mixed response, with views on their market influence and overall effect on Bitcoin price movement differing significantly.

In its most recent market analysis, crypto trading company QCP Capital noted, “We are not sure if these futures-based ETFs will be able to pull enough fresh money to cause an exponential run higher like the one we witnessed in Q4 2020”.

The nature of futures ETFs, according to QCP, means that they will likely appeal to the individual rather than institutional investors, with physical goods receiving the lion’s share of prospective capital input into Bitcoin.

These, on the other hand, may take a long time to arrive. As investors flock to existing physical Bitcoin ETFs in Canada and Europe rather than waiting for the SEC and its new Chair, Gary Gensler, to alter their tune.

“We believe that since SEC Chair Gensler indirectly ruled out a physical BTC ETF in the US for the foreseeable future, investors who have access to these abroad markets have chosen to engage there rather than invest in the forthcoming futures ETFs in the US,” QCP stated.

Bitcoin futures open interest chart. Source: Bybt

Despite “priced in” ETFs, bulls are out in force

Analysts believe the prognosis for the remainder of 2021 is still positive, with Bitcoin expected to hit $300,000.

Data shows that a following bearish phase, even on a global scale, will have a floor of at least $47,000.

Bakkt, a New York Stock Exchange-listed institutional trading business, is expected to begin trading next week.

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