Bitcoin price is up 7% in 24 hours and 32% in the last week. This bullish action is Bitcoin only, possibly a form of front running by wealthy investors who believe that an exchange traded fund (ETF) product based on the futures contracts could be approved by the US Securities and Exchange Commission approved in the next few weeks.
On October 7, Bloomberg senior analyst Eric Balchunas announced: feedback “Things go crazy when a bitcoin ETF gets approved in the fourth quarter,” by Morgan Creek Digital founder and partner Anthony Pompliano.
Balchunas reiterated that there is a 75% chance the SEC will approve a futures-based Bitcoin ETF this month.
“While we are confident that an ETF based on Bitcoin futures will be approved very soon (within two weeks), we are less confident that it will be as successful as a supported ETF.” In any case, it’s a big step forward. “
As SEC chairman Gary Gensler commented, a futures-based product that allows institutional investors to get exposure to Bitcoin and bet on its futures price without actually holding any real product will likely be approved first. Balchunas doesn’t think a physically backed ETF will be approved anytime soon, but said it will ultimately:
“At some point there will be a physical ETF. The time is not clear. Anyone can guess. Monthly or yearly challenge ”.
Balchunas cited a variety of technical and anecdotal reasons for predicting a two-week futures-based ETF admission.
Also analyst Alex Krüger quote The ETF approval hype is currently the driving force behind Bitcoin price promotions:
“This is what the crypto market is currently dealing with. The dominant story is a Bitcoin ETF. Disappointed or not, you can think about that later. “
“By the time the SEC announces this, an ETF will only be half valued,” added Krüger. Mike Bucella, general partner at crypto venture firm Blocktower, also believes that “everyone has a futures-based Bitcoin ETF at the top” after analyzing current market activity.
Matthew Dibb, Co-Founder and CEO of Stack Funds, reiterated his opinion that rumors of a Bitcoin ETF decision will fuel additional demand by the end of the month before adding that the rally is in line with the forecast. 18th
As observed by Ki Young Ju, CEO of Crypto Quant, who posted $ 1.6 billion in market orders in just minutes in October.
Someone (s) bought $ 1.6 billion worth of it $ BTC via market orders in just 5 minutes.
Short liquidations appear to be relatively smaller than $ 17 million at this point.
– Ki Young Ju (@ki_young_ju) October 6, 2021
“Someone bought $ 1.6 billion worth of bitcoin through market trading in just 5 minutes.
The liquidated shorts were less than $ 17 million at the time.
It’s like buying a whale, not like cascading liquidation. “
In late September, commodities strategist Mike McGlone of Bloomberg Intelligence predicted that the SEC would likely approve a Bitcoin futures product by the end of October.
On October 5, McGlone speculated that Bitcoin’s $ 50,000 resistance would turn into long-term support in the fourth quarter.
Join Bitcoin Magazine Telegram to keep track of news and comment on this article: https://t.me/coincunews
According to Cointelegraph