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Why the upcoming Bitcoin futures ETF may not be good news for retail investors

The time has finally come — the U.S. Securities and Exchange Commission (SEC) has finally approved the first Bitcoin ETF — albeit for futures and not a spot traded fund.

Some say this is good news, especially from a mainstream acceptance perspective. But others disagree, specifying a shift of power to Wall Street and the possibility it could trigger a sell-off event.

What’s the hold-up with Bitcoin ETFs?

According to the popular Bitcoin Twitter account @DocumentingBitcoin, financial services providers have been trying to get a Bitcoin ETF approved in the U.S since 2013.

So far, every application has been denied by the regulator. An often-cited reason is the agency’s concern that some crypto exchanges are “cooking the books” with fake spot trading. Therefore a Bitcoin ETF would be hugely manipulated.

However, in the recent past, SEC Commissioner Hester Pierce has gone on record to say this way of thinking is no longer relevant. She expanded by saying that institutional participation has made great strides in establishing this market during the present time.

“So, I think the markets have matured quite a bit.”

Fast forward to late summer, and SEC Chair Gensler began signaling his openness to the idea of a Bitcoin ETF. But under the proviso of tough compliance requirements.

On Friday, Bloomberg said the SEC is likely to greenlight Bitcoin ETF trading as early as next week.

Buy the rumor, sell the news

If true, a U.S Bitcoin EFT would be defining moment in the history of cryptocurrency.

But on-chain analyst Willy Woo isn’t so keen on the idea. He said, in his opinion, it would be an expensive way to get exposure, adding that an ETF “effectively outsources” custody to hedge funds.

If a Bitcoin futures ETF is approved, IMO it will be an expensive way to hold BTC.

The ETF effectively outsources the holding of BTC to hedge funds through a chain of profit incentives.

Woo explained that this would see a disparity between Bitcoin futures and spot prices. Hedge funds sell futures as they buy spot, resulting in them holding “spot BTC by proxy” giving retail investors a raw deal as a consequence.

What’s more, Dan Morehead, CEO of Pantera Capital, thinks Bitcoin ETF approval is a classic buy the rumor sell the news event.

To support his reasoning, Morehead referred to the CME listing of Bitcoin futures in December 2017 and Coinbase’s Nasdaq listing in April 2021, both of which resulted in sharp losses for Bitcoin after the event.

However, Vijay Boyapati thinks this time will be different. Peach’s Senior Software Engineer said the inflows into a Bitcoin ETF would be massive, meaning to sell now as Bitcoin hovers around $60,000 could be a mistake.

The post Why the upcoming Bitcoin futures ETF may not be good news for retail investors appeared first on CryptoSlate.

Bitcoin (BTC) Price Prediction: BTC/USD Risks Deeper Correction as Bitcoin Slumps to $55k

BTC/USD Declines as Bitcoin Slumps to $55k – November 30, 2021 BTC/USD is now confirmed to be in a range-bound move as Bitcoin slumps to $55K . Bitcoin fluctuates between $56,200 and $59,000 price levels. The range-bound move has caused buyers to retest the $59,000 resistance level on five occasions. The rejection was caused by::Listen

BTC/USD Declines as Bitcoin Slumps to $55k – November 30, 2021

BTC/USD is now confirmed to be in a range-bound move as Bitcoin slumps to $55K . Bitcoin fluctuates between $56,200 and $59,000 price levels. The range-bound move has caused buyers to retest the $59,000 resistance level on five occasions. The rejection was caused by prices reaching the overbought region of the market.

Resistance Levels: $70,000, $75,000, $80,000
Support Levels: $50,000, $45,000, $40,000

Bitcoin (BTC) Price Prediction: BTC/USD Risks Deeper Correction as Bitcoin Slumps to $55k
BTC/USD – Daily Chart

Following the recent range-bound movement between $56,200 and $59,000, Bitcoin has fallen above the $56,200 support. For the past four days, the bears have been defending the $59,000 resistance zone. Assuming, buyers are successful above the recent high. BTC price will attempt to retest or break the $60,000 psychological price level.

When this level is breached, BTC/USD will commence the resumption of upside momentum. BTC price will rally to the overhead resistance zones of $67,000 and $69,000. Conversely, if buyers fail to breach the recent high, Bitcoin will drop to $54,000 and later to the $52,000 price levels. This will cause Bitcoin to fall to a deeper correction.

Bitcoin (BTC) Indicator Reading

BTC/USD has a bearish crossover. That is, the 21-day line crosses below the 50-day line moving averages indicating a sell signal. . The king coin is at level 45 of the Relative Strength Index for period 14. It indicates that Bitcoin is in a downtrend zone and capable of falling on the downside. BTC price is above the 25% range of the daily stochastic. The stochastic bands are sloping horizontally as the bullish momentum subsides.

  Bitcoin (BTC) Price Prediction: BTC/USD Risks Deeper Correction as Bitcoin Slumps to $55k
BTC/USD – 4 Hour Chart

Meanwhile, Bitcoin is consolidating above the $56,200 support as Bitcoin slumps to $55K .The current upward move has been stall at the $57,400 high. If Bitcoin falls and breaks below the $56,200 support, the market will further decline to $53,800.

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Why the upcoming Bitcoin futures ETF may not be good news for retail investors

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