Bitcoin (BTC) experienced a rare respite on October 16 as the market continued to digest the approval of the first US exchange-traded funds (ETFs).

1 hour candlestick chart BTC/USD (Bitstamp). Source: TradingView
Lack of confidence in approval of non-future ETFs
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD hovering around $61,500 on Saturday, but still a 4% gain in 24 hours.

The pair hit $62,940 an hour after the Wall Street open on Friday, when news broke that regulators had given the green light to two ETFs after years of failed filings.

These ETFs will have CME bitcoin futures as their underlying asset rather than bitcoin itself, and the Securities and Exchange Commission (SEC) will begin determining the fate of the actual ETFs next month.

Futures-based ETFs have sparked controversy with widely differing opinions on their impact on the market and the overall impact on Bitcoin price movements.

“We are not sure whether futures-based ETFs will be able to raise enough new money to spur exponential growth like we saw in the fourth quarter of 2020,” cryptocurrency exchange QCP Capital said in its latest market review.

“We are very much looking forward to the influx of investors moving from gold ETFs to bitcoin. However, if BTC is above 60K, the market capitalization is over $1.1 trillion. It will take a long time to move the needle.”
QCP notes that the nature of futures ETFs means that the products are more likely to attract retail traders rather than institutional investors, with the bulk of potential Bitcoin capital deposits held for physical products.

However, it may take a long time as investors invest in existing Canadian and European ETFs rather than waiting for a potential game-changer from the Securities and Exchange Commission and its new chairman, Gary Gensler.

QCP added: “We suspect that after SEC leader Gensler indirectly ruled out a physical BTC ETF in the US for the foreseeable future, investors with access to these offshore markets chose to participate there rather than investing in future ETFs. American”. … …

Bitcoin futures open interest rate charts. Source: Bybt
Bulls in place despite ‘pricing’ ETFs
As Cointelegraph reported, the forecast for the rest of 2021 is still bright in the eyes of analysts, with Bitcoin expected to reach $300,000.

On the topic: Bitcoin gets the go-ahead for “almost no-show” prices on exchanges above $59K.

The data shows that the subsequent bearish phase, even on a macro level, is likely to be as low as $47,000.

Meanwhile, institutional trading firm Bakkt will begin trading on the New York Stock Exchange next week.

Source: CoinTelegraph