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BTC price rises above $61K amid fresh concerns over fate of physical bitcoin ETF

Bitcoin (BTC) saw some rare calm on October 16 as the market digested the approval of the United States’ first exchange-traded fund (ETF).

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

Lack of confidence in non-futures ETF approvals

Data from Cointelegraph Markets Pro and TradingView shows that BTC/USD was circling $61,500 on Saturday, yet is up 4% in 24 hours.

The pair peaked at $62,940 after Wall Street opened on Friday after news broke that two ETF applications had been defeated after years of failed applications with regulators.

These ETFs will have CME bitcoin futures as the underlying asset, and not bitcoin, with the Securities and Exchange Commission (SEC) beginning to decide the fate of “physical” ETFs next month.

Futures-based ETFs have had a mixed reception, with opinions differing greatly on their market impact and overall impact on bitcoin price action.

“We are not sure whether these futures-based ETFs will be able to pull out enough new money to trigger an exponential move, as we saw in Q4 2020,” crypto trading firm QCP Capital said in its latest market update.

“We expect an influx from investors switching from Gold ETFs to BTC. However, with BTC above 60k, the market cap is above $1.1 trillion. It will take a lot to move the needle.”

QCP pointed out that the nature of futures ETFs means the products will appeal more to retail rather than institutional investors, with the lion’s share of potential capital inflows into bitcoin thus being reserved for physical products.

However, that could be a long time, as investors pile into existing Canadian and European physical bitcoin ETFs instead of waiting for a possible change of play from the SEC and its new chairman, Gary Gensler.

QCP said, “We suspect that SEC Chair Gensler may have indirectly ruled out a physical BTC ETF in the US for the foreseeable future, with investors able to access these overseas markets to invest in an upcoming futures ETF in the US. have decided to attend there instead.” .

Bitcoin futures open interest chart. Source: Bybt

Bulls out in force despite “price” in ETFs

As Cointelegraph reported, the outlook for the rest of 2021 is still rosy in the eyes of analysts, with bitcoin tipped to reach anywhere up to $300,000.

RELATED: Bitcoin Gets the Green Light for Price Discovery and $59K . There is ‘almost no supply’ on the exchanges above

The data suggests that a subsequent bearish phase, even on a macro scale, is likely to result in a floor below $47,000.

Meanwhile, institutional trading firm Bakkt is set to begin trading on the New York Stock Exchange next week.

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