Bitcoin futures-based exchange-traded fund and new investors
Earlier today finally BTC officially claimed to the new records high. On Wednesday optimistic about the first bitcoin futures-based exchange that can open the doors to new crypto investors was the main market driver.
This time, after correction all way down under 30K, just took three months to move the way that last time took years to complete. "The new ETF, which can be traded 24 hours per day, should, in theory, make it that much easier for a wider range of investors to buy into Bitcoin, and the model could be extended to other cryptocurrencies," writes John Authers.
BTC/USD rose 5.3% to $66,174, passed its previous record high of $64,778 seen on Apr. 1, and now trading above 66K. The ETF, trading under the ticker "BITO," for BTC lovers can be a victory. With BITO, along with being more accessible to investors, it is kind of approving that as the legalization of the most popular crypto.
However, this formality legalization will bring more investors to the market, and even maybe the investment institute, which means that price movement of BTC will be more cautious from now on. and while the first Bitcoin-linked exchange-traded fund in the US, the ProShares Bitcoin Strategy ETF rose more than 4% in its first day of trading on Tuesday, it does not mean that these daily movement going to be seen more often.
On the other hand, the BTC ETF fund doesn’t directly own or hold bitcoin, but trading the bitcoin futures, so the 21Million limit is not the option anymore, because many people do not care about what they can do with BTC, the price movements are important for them, therefore the real value of BTC will be under question. Still, we should not forget that the Securities and Exchange Commission (SEC) said its decision to greenlight the BTC futures-based ETF was based on the fact that bitcoin futures, as a regulated product, would allow it to have oversight and protect investors, means more legal and governmental supervision, which is exactly the opposite of what cryptocurrency fans are looking for.
All news and legalization that we had today, as much as it can be positive for BTC, it can also be negative for that and reason for many of its holders and users to avoid BTC and look after potential alternatives.
From the technical point of view, we can see very important support at 64.8K, which earlier today was the resistance. Breaching under this level, especially under 60K can emotionally affect the market and encourage the bears to put the 50 DMA at 49.313K in the spotlight.
