Bitcoin continues to rise on rumors of the first Bitcoin futures ETF addition. Last Friday, rumors circulated that the SEC approved the application from ProShares and it has not rejected it. On the same day, Bloomberg terminal added a new ticker BITO that matches this ETF. Just yesterday, The New York Times announced that this index fund will begin trading on October 19 on the NYSE. Earlier, another major US exchange, Nasdaq, announced that it was ready to add a similar ETF from Valkyrie Investments.
Against the background of this news, the price of the first cryptocurrency has overcome the important psychological milestone of $60,000 and is confidently settling above it. Now the price is at a distance of 3% — 4% from its historical maximum and can overcome it this week.
The entire crypto community has been waiting for the ETF launch for the past 4 years and it is coming true. This is a very important step for the entire market, which will change the attitude towards cryptocurrency and Bitcoin. If the ETF is launched, it will have strong implications for the cryptocurrency market in the next few months. Many ordinary people will be able to buy this index fund from their brokers and they will not need to register on separate crypto exchanges, delve into the essence of cryptocurrencies and worry about the safety of their funds. ETF solves all these problems and opens up access to Bitcoin to a wide range of people.
This, in turn, means that the popularity of Bitcoin will greatly increase. A similar situation already happened in 2017, when the first Bitcoin futures were launched on the CME and Cboe commodity exchanges. Since the official announcement of this event, the price of Bitcoin has risen from $ 6,000 to $ 19,000 in one month. Thus, the growth was 300% against the background of the most important event for the crypto industry at that time.
A similar situation is happening now. ETF is the most popular product for a wide audience that loves to use it. Therefore, if we make an analogy with 2017, then the launch of an ETF on Bitcoin can raise its price to at least $ 100,000 within a few months. After bitcoin begins to grow and all new investors enter the crypto industry, the flow of capital from Bitcoin to alternative coins will begin. Most people will decide that they have missed the BTC growth and will be looking for other crypto assets for investment. As a result, the strongest altcoin season may arrive, an example of which we’ve observed at the beginning of 2021.
Projects that have strong fundamentals and a working product begin to grow especially strong during such periods. Investors’ attention is shifted to such projects as the most reliable and long presented on the market. Crypterium is an excellent example, which besides has recently begun to show steady growth. The project is a popular crypto bank and operates at the junction of DeFi and traditional banking, which makes it easier for ordinary users to interact with cryptocurrency. The analogy with the Bitcoin ETF can be seen here. In addition, the company has recently raised a new round of investments, which indicates a good state of affairs within the company and a new stage of growth. As a rule, such projects show exponential growth during the altseason.
After high-quality projects significantly increase in value, investors mostly start looking for undervalued coins, the capitalization of which is extremely low, and as a result, some unknown and meme coins begin to skyrocket by thousands of percent. All this is aggravated by the active work of pump & dump channels, which select low-capitalized coins and quickly push the price up by hundreds of percent in a few minutes. This is usually the last stage before the bubble collapses.
Thus, ETFs can contribute to a strong rise in the cryptocurrency market in the next six months. The coverage of cryptocurrencies can increase significantly, which will lead to strong growth in Bitcoin and the subsequent altcoins season.