BTC price hits $ 56,000 as the bulls return and talks focus on Bitcoin ETF approval


Bitcoin (BTC) returned on October 8, beating the week’s four-month high, rising $ 2,000 in two hours.

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

BTC price tops Wednesday high

Data from Cointelegraph Markets Pro and TradingView showed that BTC / USD hit just over $ 56,150 on Bitstamp, in a new show of upward momentum.

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Wednesday’s dramatic spike had hit $ 55,800, which was still the level to beat as the pair then spent Thursday consolidating.

Amid anticipation of new uptrends from traders, conversations beyond price action continued to focus on the likelihood of an exchange traded fund (ETF) being approved by the US regulator – and its implications.

As Cointelegraph reported, there is great confidence that a futures-backed Bitcoin ETF will get the green light this month, if not a traditional spot-based product.

However, as during the year-long struggle for such approval, critics continue to argue that an ETF could ultimately do more harm than good to Bitcoin. Futures in particular were put to the test this week.

“Few understand that this Bitcoin ETF, if approved, would have futures as an underlying asset,” said macro analyst Alex Krüger on a Twitter thread.

“Futures are usually in strong contango (i.e. futures> spot) so if the ETF rollover it would sell * low to buy high * and suffer contango bleed. Assets with strong contango bleed are trending down. ”

Krüger added that a spot-based ETF would be the only option that would be attractive to large institutional clients because the futures-based alternative carries undue risk.

Mixed views on the benefits of ETFs

Meanwhile, analyst Willy Woo underlined the general advantages and disadvantages of both types of ETFs.

Related: Price Spike: Are Whales On The Front Line Getting A Bitcoin Futures ETF Approved?

The Grayscale Bitcoin Trust, whose assets commentators argue is already being affected by prospective ETF approval, continued to see a negative share price versus the cash market, which topped -17% on Thursday.

The company’s CEO Michael Sonnenshein has reiterated plans to potentially convert any fund into an ETF in the future.