Bitcoin’s rally today may be in response to growing rumors that an exchange-traded product may finally be approved in the coming weeks.
According to CoinGecko, the price of BTC has increased by 7% in the past 24 hours and is up 32% in the past week. This bullish BTC price movement just might be a pioneer of sorts for large value holders awaiting approval of a futures ETF from the US Securities and Exchange Commission.
On October 7, Eric Balchonas, chief analyst at Bloomberg, answered a call from Morgan Creek Digital founder and partner Anthony Pompliano, saying “things are going to get crazy” if the ETFs are approved in the fourth quarter. Balchonas emphasized that he was 75% confident that approval was inevitable.
“While we are [confident] that Bitcoin ETFs will be approved very soon (for example, within two weeks), we are [less] confident that it will be an even bigger hit than financially backed ETFs. Anyway, steps are taken. big. ”
Given comments from SEC President Gary Gensler, the futures product is likely to be approved first, allowing institutional investors to access BTC and bet on a future price without getting paid. Balchonas said he didn’t think the financially supported ETF would be approved soon, but ultimately said so:
“At some point the physical will happen. The timing is unclear. Some people assume. Try months or years.”
He cited “several reasons, both technical and narrative” for agreeing to the two-week futures forecast, adding that he was 75% confident.
Popular analyst Alex Kruger also cited the EFT approval hype as the driving force behind BTC pricing so far:
“When the SEC announced that the ETF would be half the price,” he added. Blocktower’s general partner in cryptocurrency, Mike Buchella, also said that, in his opinion, “people run BTC futures ETFs” after analyzing the current market activity.
Related: Bitcoin Futures ETF Has a ‘75% Chance of Approval’ in October
Stack Funds co-founder and CEO Matthew Depp echoed this sentiment, commenting that “rumors of a BTC ETF decision later this month are fueling more demand,” before adding that the rally is in line with the 18-year ETF Proshare forecast. consent. October.
Whales have certainly been bought, noted Crypto Quant CEO Ki Yong Joo, who delivered $1.6 billion in market orders in just a few minutes on October 6.
In late September, Mike McGlone, a commodity strategist at Bloomberg Intelligence, predicted that the Securities and Exchange Commission would approve a bitcoin futures product “likely by the end of October.”
On October 5, McGlone suggested that the $50K Bitcoin price resistance had turned into long-term support in the fourth quarter.