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

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Bitcoin (BTC) experienced a rare calm on October 16 as the market digested further approval of the United States’ first exchange-traded funds (ETFs).

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

Lack of confidence in the approval of ETFs without futures

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

The pair had hit $ 62,940 hours after Wall Street opened on Friday when news broke that regulators had approved two ETF applications after years of failed applications.

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

Futures-based ETFs have been received differently, with opinions fluctuating widely about their market impact and the overall impact on Bitcoin price developments.

“We’re not sure if these futures-based ETFs will be able to pull in enough new money to trigger an exponential upward movement like the one we saw in the fourth quarter of 2020,” crypto trading firm QCP Capital explained in its latest market update.

“We expect an influx of investors switching from gold ETFs to BTC. However, with BTC over 60,000, the market cap is over $ 1.1 trillion. It will take a long time to move the needle.”

QCP noted that the nature of futures ETFs means that the products are likely to appeal to retail investors rather than institutional investors, with the lion’s share of the potential capital inflow into Bitcoin being reserved for physical products.

These may be a long time coming, however, as investors pile into existing Canadian and European physical Bitcoin ETFs instead of waiting for a possible change in strategy 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 US for the foreseeable future, investors who have access to these foreign markets have decided to participate there instead of in the upcoming futures Investing ETFs in the US, “added QCP.

Open Interest Chart for Bitcoin Futures. Source: Bybt

Bulls in force despite “priced in” ETFs

Still, as Cointelegraph reported, the outlook for the remainder of 2021 remains rosy in the eyes of analysts, with Bitcoin expected to hit up to $ 300,000.

Related: Bitcoin Gets Green Light For Price Determination With “Almost No Offer” On Exchanges Over $ 59,000

Any subsequent bearish period, even at the macro level, is likely to have a floor no less than $ 47,000, data suggests.

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