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

Bitcoin ( BTC ) experienced a rare calm on October 16 as the market continued to digest the approval of the first U.S. exchange-traded fu...

Bitcoin (BTC) experienced a rare calm on October 16 as the market continued to digest the approval of the first U.S. exchange-traded funds (ETFs).

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

Lack of confidence in non-future ETF approvals

Data Cointelegraph Markets Pro and TradingView showed BTC / USD around $ 61,500 on Saturday, still up 4% in 24 hours.

The pair had reached $ 62,940 hours after the Wall Street opened on Friday as news broke that regulators had green light two ETF applications after years of failed applications.

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

ETFs based on futures have received mixed reviews, with views varying widely on their impact on the market and their overall effect on Bitcoin price action.

“We don’t know if these futures based ETFs will be able to withdraw enough new money to trigger an exponential upward movement like the one we saw in Q4 2020,” the trading company said. crypto QCP Capital in its latest market update.

“We are expecting an influx of investors who are abandoning gold ETFs in BTC. However, with BTC above 60,000, the market cap is over $ 1.1 trillion. It will take a long time to do so. move the needle. “

QCP pointed out that the nature of futures ETFs means that the products are likely to attract retail investors more than institutional investors, with the lion’s share of potential capital inflows into Bitcoin being reserved for physical products.

These, however, may be long in coming, as investors cram into existing Canadian and European physical Bitcoin ETFs instead of waiting for a potential game change from the SEC and its new chairman, Gary Gensler.

“We suspect that after SEC Chairman Gensler indirectly ruled out a physical BTC ETF in the United States for the foreseeable future, investors able to access these foreign markets decided to participate rather than invest. in future US futures ETFs, ”added QCP. .

Bitcoin futures open interest chart. Source: Bybt

The bulls in force despite the ETF “evaluated”

Like Cointelegraph reported, the outlook for the rest of 2021 nevertheless remains rosy in the eyes of analysts, Bitcoin should reach $ 300,000.

Related: Bitcoin Gets Green Light For Price Discovery With ‘Almost No Supply’ On Exchanges Over $ 59,000

A subsequent bearish phase, even on a macro scale, will likely have a bottom of not less than $ 47,000, the data suggests.

Meanwhile, institutional trading company Bakkt is preparing to start trading on the New York Stock Exchange next week.