BTC price remains above $ 61,000 amid new concerns about the fate of the physical Bitcoin ETF

Bitcoin (BTC) experienced a rare lull on October 16 as the market continued to accept approval of America’s first exchange-traded funds (ETFs).

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

Lack of confidence in non-sustainable ETF approvals

Data from Cointelegraph Markets Pro and TradingView showed the BTC / USD pair traded in a circle of $ 61,500 on Saturday, still up 4% in 24 hours.

The pair had hit $ 62,940 hours after Wall Street opened on Friday when it was revealed that regulators had given the go-ahead for two ETF applications after years of failed applications.

BTC price remains above $ 61,000 amid new concerns about the fate of the physical Bitcoin ETF
BTC price remains above $ 61,000 amid new concerns about the fate of the physical Bitcoin ETF

These ETFs will have CME Bitcoin futures as an underlying asset rather than Bitcoin itself, with the Securities and Exchange Commission (SEC) starting next month to determine the fate of “physical” ETFs.

Futures-based ETFs have been received differently, with opinions fluctuating widely about their impact on the market and the overall impact on Bitcoin price developments.

“We’re not sure if these futures-based ETFs can attract enough new money to trigger an exponential upward movement like the one we saw in the fourth quarter of 2020.” stated cryptocurrency trading company QCP Capital in its latest market update.

“We expect an influx of investors switching from gold ETFs to BTC. However, with BTC over 60,000, the market cap is over $ 1.1 trillion. It will take a long time to move the needle.”

QCP noted that the nature of ETF futures meant that the products would likely attract more retail investors than institutional investors, with most of the potential capital inflow into Bitcoin therefore being reserved for physical products.

Nevertheless, This can take a long time as investors pile into existing Canadian and European physical Bitcoin ETFs instead of waiting for a possible game changer from the SEC and its new chairman., Gary Gensler.

“We suspect that investors who have access to these foreign markets decided to get involved instead of investing after SEC chairman Gensler indirectly scrapped a physical BTC ETF in the US for the foreseeable future,” added QCP.

Open Interest Chart for Bitcoin Futures. Source: Bybt

Bulls are in effect despite ETF price

As Cointelegraph reported, the outlook for the rest of 2021 remains optimistic in the eyes of analysts, with Bitcoin tipping to $ 300,000.

Any subsequent bearish period, even at the macro level, is likely to hit a low of no less than $ 47,000., the data suggest.

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

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