October 20, 2021

Bitcoin ETF Approved, What Does it Mean for BTC?

The first Bitcoin ETF (exchange-traded fund) in the United States (US). ProShares Bitcoin Strategy ETF was launched to the market on Thursday, October 19 after receiving official approval from the U.S. Securities and Exchange Commission (SEC) last week.

The first Bitcoin ETF (exchange-traded fund) in the United States (US). ProShares Bitcoin Strategy ETF was launched to the market on Thursday, October 19 after receiving official approval from the U.S. Securities and Exchange Commission (SEC) last week.

During the first trading session, the ETF became the second-highest ETF in terms of volume. This was also one of the largest debuts on the New York Stock Exchange (NYSE) and it is expected to become one of the most traded instruments in the coming years. 

Disclaimer: the information shared by AltSignals and its writers should not be considered financial advice. This is for educational purposes only. We are not responsible for any investment decision you make after reading this post. Never invest more than what you are able to lose. Always contact your professional financial advisor.

Bitcoin ETF Approved, What Does it Mean for BTC?

After several years with projects and companies proposing an ETF to the U.S. SEC, the first one (ProShares Bitcoin Strategy Fund (BITO)) was finally approved. It was not only the first Bitcoin ETF to be approved but it was also the second-largest in terms of volume during the opening day. 

There have been 23,103 million shares traded worth $950 million during the first Tuesday session. It is worth mentioning that the share closed at a price of $41.89 after being released at a price close to $40. 

The ETF is a futures-based product that does not rely on the price of the spot market. Usually, Bitcoin futures have a different price compared to the spot price. Despite that, the sentiment seemed to be positive as seen in the trading volume for this instrument.

Thanks to it, investors in the United States will be able to get exposure to Bitcoin and the cryptocurrency market without having to hold the underlying product and think about custody and how to protect it. 

According to Chen Arad, COO of Solidus Labs, the futures ETF performed well and attracted a large number of investors. About it, Arad stated:

“As could be expected from a highly anticipated and highly discussed new product, the futures ETF is performing well, and attracting many investors who are looking for prudent ways to get more exposure to crypto. But the bigger significance is the strong signal it gives for increased regulatory approval and adoption of Bitcoin and crypto as a whole, indicated by the general price increases.”

Bitcoin Price

Of course, the official launch of the first Bitcoin ETF to be released in the United States had a positive impact on the Bitcoin price (spot). Investors were very bullish about the official approval of a Bitcoin ETF and it finally happened.

As we can see in the chart above, the 4-hour BTC/USDT trading pair has been moving higher in recent weeks (October). This shows that there has been a strong positive sentiment about a possible approval of a Bitcoin ETF. Several analysts and experts were already talking about this possibility and it finally happened.

Bitcoin’s price is now close to an all-time high as it has been very close to surpassing $64,500. Indeed, the virtual currency has surpassed new all-time highs when compared to other major currencies such as the Euro (EUR) or the Australian Dollar (AUD). This shows that Bitcoin could continue growing in the coming days and weeks. 

According to PlanB’s Stock-to-Flow model, Bitcoin was poised to hit $47,000 in August, $43,000 in September and $63,000 in October. This is indeed what happened in recent months. But the most interesting thing is what could happen in the coming weeks. 

As per PlanB, Bitcoin could go to $98,000 in November and surpass the $100,000 barrier after reaching that milestone. In December, Bitcoin could eventually hit $135,000 per coin. Although this might not happen, the Stock-to-Flow model seemed to have properly predicted Bitcoin’s price action in recent months. 

What’s Next?

It is just a matter of time to see what will happen with Bitcoin’s price in the coming months. However, one thing is clear. Bitcoin is now available for investors that want to get access to Bitcoin’s exposure and do not want to carry with the responsibility of custody of the coins themselves. 

Moreover, with a Bitcoin ETF, investors operate in a heavily regulated market where financial regulations apply and where investors are protected. In terms of price, we can only wait and see what could happen in the next months and years. 

AltSignals Team

Proficient authors guiding you with transparency, integrity and education through the finance international markets

The AltSignals writing team consists of experts dedicated to the world of finance and technology, with a particular focus on cryptocurrencies and forex. Our writers bring a broad range of knowledge and experience, cultivated through years of arduous and direct involvement in financial markets, as well as intense technological collaboration.

Editorial approach

At AltSignals, we believe that transparency and education are the key to empowering our readers. Therefore, our content is meticulously researched to ensure its accuracy and thoroughness. Each of our articles is created with the aim of providing educational insights and in-depth analysis, helping both beginners and experienced traders.

Commitment to quality

Integrity is certainly the foundation of our editorial process. The team follows rigorous journalistic standards with careful review, all to ensure that each publication is meticulously researched and exceeds our readers’ expectations.

Our mission is to provide analysis that informs as well as guides users and enthusiasts through the complexities of the cryptocurrency and forex markets. In line with our motto of “quality over quantity”, we guarantee that only the highest quality trading signals are published.

In addition to our commitment, which extends beyond the simple transmission of useful information, our in-depth analysis focuses on profitability and effectiveness squarely, avoiding the common industry habit of prioritizing profit over accuracy. Our traders are strategic experts who offer personalized help to those seeking worthwhile portfolio management tactics.

Diverse knowledge

Our authors are proficient in a variety of topics across the financial spectrum, from emerging trends in blockchain to the nuances of forex trading. This diverse range of knowledge allows the team to cover several topics, ensuring our content is always comprehensive and deeply specialized.

Interactivity and support

We understand that the world of trading can be complex for many. Therefore, alongside producing informative articles, our team is also committed to interacting with the community. Through comment sections, forums and direct support, we encourage our readers to seek clarification and sharpen their understanding, promoting an environment of continuous learning.

Future vision

Looking to the future, the AltSignals writing team is imbued with a vision that transcends regular publishing, and continues to dedicate itself to discovering and reporting on the latest innovations and trends available in the market. We are constantly seeking to improve our skills and expand our knowledge, with the ultimate goal of being a reliable and respected source in digital financial journalism.

There is great commitment to discovering and reporting not only the latest news and trends in the market, but also to equipping our readers with the tools they need to navigate volatile markets with confidence. We firmly believe that, with the support of an appropriate platform coupled with accurate guidance, our readers and traders can turn market volatility into a competitive advantage.

Join us

Follow AltSignals to stay up to date with the latest developments in the world of finance and technology, and explore how our insights can help improve your trading strategies. The AltSignals team is here to guide you through the exciting, dynamic and challenging world of financial markets.

Latest posts author AltSignals Team

Latest posts from the category Bitcoin