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Potential selling pressure due to ETF approval
Analysts at K33 Research, a crypto asset (virtual currency) analysis company, pointed out on the 2nd that if a Bitcoin (BTC) spot ETF is approved, there may be temporary selling pressure.
Vettle Runde, an analyst at the company, said there was a 75% chance that selling would prevail once the ETF was approved for listing. On the other hand, we predict there is a 20% chance that approval will result in asset inflows that will offset the selling pressure and cause prices to rise.
There is still a 5% chance that the application will be rejected. Mr. Lunde explained:
Bitcoin prices have been on the rise for the past three months. A significant portion of short-term market participants are eyeing ETF approval events as an opportunity to profit. Therefore, they may try to seize this opportunity with news of approval.
There are mixed opinions on whether the U.S. Securities and Exchange Commission (SEC) will approve physical ETFs this month.
For example, Matrixport opined on the 3rd that the SEC will reject all Bitcoin spot ETFs this month.
The reason for this is that there is a view that ETF applicant companies have not yet met the requirements necessary for approval, and SEC Chairman Gary Gensler criticized the cryptocurrency industry in December for many compliance violations. listed.
He also said that if it is rejected, the price of Bitcoin could fall by up to 20%.
connection: U.S. SEC disapproves Bitcoin spot ETF again? Matrixport releases new analysis
Meanwhile, FOX Business in the US is reporting that the SEC may approve physical ETFs in early January, citing sources close to the companies applying for ETFs.
connection: SEC may make decisions on multiple Bitcoin ETF listing applications this week = US FOX Business report
What is Bitcoin ETF?
An Exchange Traded Fund that includes Bitcoin as an investment. An investment trust is a financial product that collects money from investors into a single fund and invests it in stocks, bonds, etc. The system is such that the investment results are distributed according to each investor’s investment amount. Among investment trusts, ETFs are listed on stock exchanges, so they can be bought and sold like stocks.
Virtual currency glossary
connection:What is the exchange-traded fund “Bitcoin ETF”? | Why BlackRock’s application is attracting attention
Analysis background
Vettle Runde of K33 Research also pointed out that Bitcoin futures premium (difference between spot price and futures price) on the Chicago Mercantile Exchange has soared to an annual rate of 50%, indicating a growing sense of overheating. did.
Futures open interest has increased by more than 50,000 BTC in the past three months, largely due to the potential approval of a Bitcoin spot ETF.
On top of that, at the current premium (above spot BTC), maintaining CME exposure costs 1-2% per month, which is acceptable in the medium term, but in the long term. He said it was unsustainable, especially when there were other investment avenues.
connection:
Learn about Bitcoin ETFs from the beginning: Explaining the advantages and disadvantages of investing and how to buy US stocks
The post “Possibility of actual selling due to Bitcoin spot ETF approval” K33 Research’s opinion appeared first on Our Bitcoin News.
English (US) ·