Bitcoin hit a four-month high today, adding $ 2,000 in two hours.
Data from TradingView shows that BTC / USD hits $ 56,150 on Bitstamp in a new bullish performance. On Wednesday the price climbed to $ 55,800 – a level to beat as BTC then spent the whole day consolidating.
Source: TradingView
As traders anticipate new uptrends, the discussion beyond price action continues to focus on US regulators’ approval – and its implications – for an exchange traded fund (ETF).
The community is very confident that a Bitcoin futures ETF will go live this month, if not a traditional spot product.
However, critics continue to argue that an ETF could ultimately do more harm than good to Bitcoin, especially since futures were criticized this week.
Macro analyst Alex Krüger stated in a Twitter thread:
“Very few people understand that if a Bitcoin ETF is approved, it is tied to a futures contract. Futures are usually in strong contango (i.e., futures> spot), so when an ETF converts, it will “sell low to buy high” and experience contango bleeding. The wealth then tends to decline. “
The source: Twitter
Krüger emphasized that a spot ETF is the only attractive option for high-volume institutional clients, as the futures-based alternative entails undue risk.
Meanwhile, analyst Willy Woo highlights the common advantages and disadvantages of both types of ETFs.
“I think the best thing about ETFs is their ability to prevent BTC unit bias. Long-term negative: Spot ETFs – increasing selling pressure due to fees, while futures ETFs – are potentially more declining and more volatile due to the dominance of futures. “
Grayscale Bitcoin Trust, whose commentators say it was affected by a possible ETF approval, continues to see negative stock prices compared to the spot market, which topped -17% this Thursday.
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Annie
According to Cointelegraph
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