After the fund’s debut, analysts say that large investors will change their behavior because they “probably want to see what liquidity looks like when bitcoin falls back aggressively, as it will at some point, “said Jeffrey Halley, an analyst at Oanda.
In addition to ProShares, a new ETF is going to debut on the regulated market. The exchange-traded Bitcoin fund based on the futures of Valkyrie (NASDAQ: BTF) is set to land on the NASDAQ today under the ticker BTF, the company confirmed yesterday.
The launch comes just four days after the debut of the first ETF and after the US Securities Commission gave the green light to Valkyrie’s Bitcoin Strategy ETF on October 20.
Second, as ‘Reuters’ rightly observed, the Bitcoin futures markets operate on a contango curve. In other words, longer-term contracts are more expensive than those of the previous month. That means money is lost by moving contracts that expire to the new entry month. They probably “want to see more ordering with decent two-way liquidity and shallower contango,” Halley boasts.
For this reason, the spot market for cryptocurrencies has not experienced an abrupt prolongation of the rally of more than 40% that accumulated in October. Rather, it has continued to approach record highs.
“The approval of a Bitcoin ETF certainly further boosts the credibility of bitcoin as a global investment. However, being futures-based will not directly increase the demand for Bitcoin itself and, in fact, there is a real possibility that the launch is bearish for the cryptocurrency in the short term like what happened in 2017 when the futures of the most traded of the ‘cryptos’ were launched for the first time on the Chicago Mercantile Exchange “, comments Antony Portno, founder of Traders of Crypto . The crypto asset touched $ 20,000 after a 2,000% rise in the previous two months. But then a bear market broke out that lasted for a year.
In the meantime, it became known that the Bitcoin ETF introduced by VanEck is scheduled for next Monday, October 25. 16 bitcoin ETF applications are pending decision, on which the US Securities and Exchange Commission has yet to comment.
Unlike the rest of the analysts, for the bank JP.Morgan maintains that the rise in Bitcoin is more linked to the rise in global inflation. “We believe that the perception of ‘cryptocurrency’ as a better hedge against inflation than gold is the main reason for the current rally, which has triggered a shift from gold ETFs to bitcoin funds since September,” said the strategist Nikolaos Panigirtzoglou.
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