[ad_1]
A surge in Bitcoin prices today may be in response to heightened speculation that an exchange-traded product may finally be approved in the coming weeks.
BTC prices have risen 7% in the past 24 hours and have jumped 32% in the past week according to CoinGecko. This bullish price action for BTC only, may be a form of front-running by big bag holders in anticipation of a futures ETF approval by the United States Securities and Exchange Commission.
On October 7, Eric Balchunas, senior analyst at Bloomberg responded to an exclamation from Morgan Creek Digital founder and partner Anthony Pompliano, declaring that “things are going to get crazy” if an ETF is approved in the fourth quarter. Balchunas reiterated that he is 75% certain approval is imminent.
” While we [are] confident that Bitcoin futures ETFs will be approved very soon (as in two weeks), we [are] less confident that they will be a huge success like a physically backed ETF would be. A big step anyway.
Given comments from SEC boss Gary Gensler, a futures product should be approved first, which allows institutional investors to gain exposure to BTC and bet on its future price without actually owning it. Balchunas said he didn’t think a physically backed ETF would be approved anytime soon, but said he would end up:
“At some point, the physical will happen. The timing is so fuzzy. Anyone can guess. Prob months or years.
He cited “multiple reasons both technical and anecdotal” for the prediction of ETF approval over two weeks, adding that he was 75% confident.
Prominent analyst Alex Krüger also cited the EFT endorsement hype as driving BTC price action right now:
This is what the crypto markets are currently trading. The dominant narrative is a bitcoin ETF. Disappointed or not, you can worry about that later. https://t.co/aIv3BFZqI4
– Alex Krüger (@krugermacro) October 6, 2021
He added: “By the time the SEC makes the announcement, an ETF would be half the price.” General partner of venture capital firm Blocktower, Mike Bucella, also said he believed “people run a futures-based BTC ETF” after analyzing current market activity.
Related: Futures-Based Bitcoin ETF Has ‘75% Chance Of Approval’ In October
Matthew Dibb, co-founder and COO of Stack Funds, echoed the sentiment, commenting “rumors of an ETF BTC move later in the month are boosting demand,” before adding that this rally coincides with the anticipation of the approval of ETF Proshares on October 18.
The whales have certainly bought, as observed by Crypto Quant CEO Ki Young Ju, who noted $ 1.6 billion in market orders within minutes on October 6.
Someone bought for 1.6 billion dollars $ BTC via market orders in just 5 minutes.
Short liquidations seem relatively smaller, like $ 17 million at the time.
It’s more like buying whales, not cascading closeouts. Https://t.co/dD3OsykiET pic.twitter.com/0NnvbmaYYm
– Ki Young Ju (@ki_young_ju) October 6, 2021
In late September, Bloomberg Intelligence commodities strategist Mike McGlone predicted that the SEC would approve a BTC futures product “potentially by the end of October.”
On October 5, McGlone speculated that Bitcoin’s price resistance at $ 50,000 was about to switch to long-term support in the fourth quarter.
[ad_2]
Source link