There are high chances that the bitcoin whales are advocating for the approval of Bitcoin futures ETF. According to Eric Balchunas, a senior analyst at Bloomberg, there are 75% chances that the SEC will approve the Bitcoin futures ETF this month. This may be the reason for the spike in Bitcoin price today, as many are looking forward to the exchange-traded product soon.
Data from CoinGecko suggests that BTC prices have increased by 7% in a day and a surge of up to 32% in a week. The whales may be responsible for the bullish trends as a strategy for more returns.
According to Morgan Creek Digital’s founder and partner, ETFs will make things go insane. Bloomberg’s Eric Balchunas believes that there are 75% chances of approval. He added that even though many expect ETFs will be a big hit, they will not be the same as physical-backed ETFs.
SEC gave a hint through its chair Gary Gensler that it is likely to approve a futures product first. This is to favor institutional investors so that they can confidently invest in BTC and its future price.
Balchunas believes that even though physically backed ETFs will finally come into fruition, it will not be soon. He added that many reasons fuel for the two-week futures ETF approval making him 75% confident.
According to crypto analyst Alex Kruger on Twitter, the ETF approval hype leads to a BTC price spike. This is a similar situation that happened in July 2018 where everyone was expecting an ETF leading to a higher BTC price, only that this time the ETF may happen. He added that when the SEC makes the announcement, the price will be much higher.
Mark Bucella, a general partner at BlockTower Capital, did a market analysis and has concluded that people are running a futures-based BTC ETF. Matthew Dibb, co-founder, and chief operating officer of Stack Funds, supported this concept, who believes the BTC ETF is rallying the price increase.
There is evidence that the whales have been actively buying. CryptoQuant CEO Ki Young Ju observes that there were up to $1.6 billion market orders in a matter of minutes on Wednesday. Short liquidations are also decreasing, which suggests more people are into buying.
Image by Sergei Tokmakov Terms.Law from Pixabay
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