BTC price hovers above $61K amid fresh concerns over fate of physical Bitcoin ETF

Bitcoin (BTC), which saw some calm Oct. 16, as the market digested the approval of the first exchange-traded funds in the United States (ETFs).

BTC/USD 1-hour candle charts (Bitstamp). Source: TradingView

Non-futures ETF approvals deemed untrustworthy because of lack of faith

Cointelegraph Markets Pro and TradingView data showed that BTC/USD was at $61,500 Saturday. This is still up by 4% over 24 hours.

After Friday’s Wall Street opening, the pair was trading at $62,940. This was after regulators announced that two ETF applications had been approved.

These ETFs will use CME Bitcoin futures rather than Bitcoin as their underlying asset. The Securities and Exchange Commission (SEC), is set to start deciding the fates of “physical” ETFs in the next month.

ETFs based on futures have received mixed reviews. Opinions vary on how they affect the market and what impact they have on Bitcoin price action.

QCP Capital, a crypto trading firm, stated that “We aren’t sure if these futures based ETFs can draw enough money to trigger an exponential movement higher like the one seen in Q4 2020.”

We expect an inflow of investors who switch from Gold ETFs to BTC. The market capitalization of BTC is over $1.1 trillion, though, as it has a high level of 60k. It will take a lot of effort to move the needle.

QCP noted that futures ETFs are designed to appeal to retail investors more than institutional investors. The majority of capital inflows into Bitcoin will be reserved for physical products.

These may not be possible for some time as investors continue to invest in existing Canadian and European Bitcoin ETFs rather than waiting for the SEC or its new Chair Gary Gensler to change their mind.

QCP stated that they suspect that Gensler, the SEC Chair, indirectly eliminated a physical BTC ETF from the US in the foreseeable future. Investors who have access to these markets overseas may have chosen to invest there instead of in futures ETFs in America.

Chart showing open interest for Bitcoin futures. Source: Bybt

Bulls remain strong despite ETFs that are “priced in”.

Cointelegraph reported that the outlook for 2021 is still positive, and Bitcoin is expected to rise to $300,000.

Related: Bitcoin is given the green light to price discovery on exchanges exceeding $59K

Data suggests that a bearish phase following will have a floor of not less than $47,000 on a macro-scale.

A #BTC Bear Market will eventually come, but today is not that day$BTC#Crypto #Bitcoin
— Rekt Capital (@rektcapital) October 16, 2021

Bakkt, an institutional trading company, will trade on the New York Stock Exchange starting next week.

2021's Most Anticipated Growth & Wealth-Building Opportunity

Join Thousands of Early Adopters Just Like You Who Want to Grow Capital and Truly Understand Cryptocurrency Together

Eileen Wilson

Eileen Wilson –Technology and Energy My Name is Eileen Wilson with more than 5 years of experience in the Stock market industry, I am energetic about Technology news, started my career as an author then, later climbing my way up towards success into senior positions. I can consider myself as the backbone behind the success and growth of with a dream to expand the reach out of the industry on a global scale. I am also a contributor and an editor of the Technology and Energy category. I experienced a critical analysis of companies and extracted the most noteworthy information for our vibrant investor network.

Close Bitnami banner