BTC price is hovering above $ 61,000 due to new fears about the fate of physical Bitcoin ETFs

Bitcoin (BTC) experienced a rare calm on October 16 as the market digested further admission of the first U.S. Exchange Traded Funds (ETFs).

Lack of confidence in non-future ETF approvals

Data from Cointelegraph Markets Pro and TradingView show BTC / USD hovered around $ 61,500 on Saturday, still up 4% over 24 hours.

The pair hit $ 62,940 after Wall Street opened on Friday when it was revealed that regulators had given the green light to two ETF applications after years of failed filings.

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

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

“We’re not sure if these futures-based ETFs can attract enough new money to trigger exponential growth like the fourth quarter 2020 levels,” said money trading firm QCP Capital Electronics in its latest market update.

“We expect investor cash flow to switch from gold ETFs to BTC. However, with BTC over 60,000, the market cap is over $ 1.1 trillion. The move will take a long time. “

QCP points out that the nature of ETF futures means that the products are likely to be more attractive to retail investors than institutional investors, as this is how most of the potential inflows into Bitcoin will be spent on physical products.

These may not come a long way, however, as investors flock to existing Canadian and European physical Bitcoin ETFs instead of waiting for a possible move from the SEC and their new president, Gary Gensler.

“We suspect that after SEC chairman Gensler indirectly ruled out a physical BTC ETF in the US for the foreseeable future, investors with access to these foreign markets have decided to move into future futures ETFs instead US to invest, “added QCP.

Bulls in force despite “rated” ETFs

As Cointelegraph reported, the outlook for the remainder of 2021 remains very positive in the eyes of analysts, with Bitcoin potentially reaching as high as $ 300,000.

Related: Bitcoin Gets Green Light For Pricing As “Almost No Offer” On Exchanges Above $ 59,000

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

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