First Bitcoin futures ETF comes today: BTC price volatility expected
First Bitcoin futures ETF comes today: BTC price volatility expected
The conversation in the crypto city has been the possible introduction of a Bitcoin ETF in the USA in the past few days. After all, the country's stock market supervision has been hesitating to allow such a product, while other nations such as Canada and Brazil did this at the beginning of the year.
The pressure on the SEC grows and the calling of Gary Gensler, who had previously had experience with blockchain, was considered a promising step in the right direction.
Community members and strategists to start outside of the space optimistic predictions that a Bitcoin ETF could see the light of day by the end of 2021.
and now, just a few hours away from maybe the If it is in the USA live, although secured with futures, it is worth checking the possible effects on the asset and the entire industry.
sell the news moment?
we start with exploring the so-called "Buy the rumor, sell the news" moment. This is a popular strategy among dealers who tend to accumulate in the future in the expectation of a certain significant event and sell their positions when it becomes official. The goal is to use the growing hype and put other participants at the top.
and Bitcoin's price has indeed increased since the reports about an upcoming futures-supported BTC ETF in the United States intensified last week. The cryptocurrency has increased for the first time since April and currently over 60,000 USD is less than 5 % removed from reaching a new everyday high.
Some experts see this moment as the potential local top for the entire cryptocurrency market. Jim Cramer, the moderator of CNBCS MAD MONEY, called recently he had sold part of his stocks to digital assets because he expected a correction after the ETF has gone live.
There are no guarantees that Bitcoin will actually go south at this time. However, retailers should look after potentially volatile trading days, since the effects of such an important and long -awaited new product are on the market under the supervision of the largest market - the USA.
The shadow of the CME Futures Contracts
At the height of the previous bull run at the end of 2017, the crypto community experienced another significant development on the way to legitimacy on the legitimacy of Bitcoin with the introduction of BTC Futures Contracts at institutional level at two large stock exchanges-CBOE GLOBAL Markets and the Chicago Mercantile Exchange (CME). .
While the former had a relatively short life, the latter is often fault for what happened next in the markets. Bitcoin had just left his ATH at $ 20,000, but lost more than 80% of its value the following year. Numerous analysts later blamed the manipulation of the appointment markets and in particular the CME.
Now, four years later, the cryptocurrency stands at the door of its most important introductory event-a Bitcoin ETF in the USA-and some fear that the Bear Market could repeat itself.
This scenario now appears less likely. The BTC landscape is now significantly different because the asset has covered a long way in the past four years. It has seen countless " Moments of the heart ”, in which former Basher owners became. It also saw the big appearance of institutions and huge companies that internal "> Keep in the value of billions of dollars in their balance sheets. In addition, the current rally showed no signs of exhaustion, while the rally in 2017 caused exactly the opposite when CME launched its futures.
The primary cryptocurrency has also developed into a trillion dollar asset with a market capitalization larger as giants like Tesla and Facebook.
legimatics and higher demand
It is still uncertain whether the BTC price will go south after the ETF's short -term trade start, but one thing is certain - such a product would help increase the legitimacy of the cryptocurrency in the more traditional investors of the old school.
We have heard in the past how some prominent names were used to invest funds in relation to regulatory security in safe instruments such as bonds or gold -defined bitcoins. This should not be the case as soon as BTC has the green light from the leading securities supervisory authority in the largest economy in the world.
The approval of a Bitcoin ETFs, even if it is (for now) a futures ETF, the cryptocurrency should theoretically make a legitimate investment option for many who have so far kept away from the market.
Perhaps Douglas Yones-the head of the stock market traded on the New York Stock Exchange (where the Bitcoin ETF from Proshares is expected to go live)-has best explained the situation. proverb that's not the Last. “
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