Today’s rise in Bitcoin prices could be the answer to growing speculation that a listed product could finally be approved in the next few weeks.
According to CoinGecko, BTC prices have increased 7% in the last 24 hours and 32% in the last week. This bullish BTC-only price action can be a way of getting ahead by large holders pending approval of a futures ETF by the US Securities and Exchange Commission..
October 7th Bloomberg Senior Analyst Eric Balchunas answeredÂ to an exclamation from Morgan Creek Digital founder and partner, Anthony Pomplianothat when an ETF gets approved in the fourth quarter, “it goes crazy”. Balchunas reiterated that he was 75% certain that the permit was imminent.
While we are confident that the Bitcoin futures ETFs will be approved very soon (in two weeks), we are not as confident that they will be a huge success as a physically backed ETF would be. However, it is a big step.â ????
Considering the comments of SEC chief executive Gary Gensler, a futures product will likely be approved first, allowing institutional investors to expose themselves to BTC and bet on its future price without having anything in their possession. Balchunas said he doesn’t think a physically backed ETF will be approved anytime soon, but said it will be approved at some point:
â ???? At some point the physical currency will be approved. But the timing is not clear. Anyone can guess. Probably months or years.â ????
He cited “several technical and anecdotal reasons” for predicting a two-week ETF admission to futures, adding that he was 75% confident.
The prominent analyst Alex Krüger also named the hype surrounding the EFT approval at that time as the driver of the BTC price campaign.:
This is what crypto markets are trading now. The prevailing narrative is a Bitcoin ETF. Disappointment or not, you can worry about that later. https://t.co/aIv3BFZqI4
to???? Alex krueger (@krugermacro) October 6, 2021
This is what the cryptocurrency markets are trading right now. The prevailing narrative is a Bitcoin ETF. Disappear or not, we can think about that later.
He added that “until the SEC makes the announcement, an ETF will be offered at half price.”. General partner of cryptocurrency firm Blocktower, Mike Bucella, also said he believes so “People look at an ETF based on BTC futures” after analyzing current market activity.
Matthew Dibb, Co-Founder and Chief Operating Officer of Stack Funds, reiterated sentiment, commenting that “Rumors of a decision on the BTC ETF at the end of the month are boosting demand.”before adding that this rally coincides with the anticipation of the Proshares ETF approval on October 18th.
The whales certainly boughtsaid the CEO of Crypto Quant, Ki Young Ju, who landed $ 1.6 billion in market orders in just minutes on October 6th.
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 time.
This is more of a whale purchase, not a cascade liquidation.https: //t.co/dD3OsykiET pic.twitter.com/0NnvbmaYYm
to???? Ki Young Ju ì £ ¼ê¸ ° ì ???? (@ki_young_ju) October 6, 2021
Someone (s) bought $ 1.6 billion worth of BTC through market orders in just 5 minutes. Short-term liquidations seem relatively minor, like $ 17 million back then. This is a whale buy, not a cascade sale.
At the end of September, the commodities strategist at Bloomberg Intelligence, Mike McGlone predicted that the SEC would “potentially approve” a BTC futures product in late October.
5th October McGlone speculated that bitcoin price resistance at $ 50,000 would shift to long-term support in the fourth quarter..