Will Bitcoin Price Pumps Ahead As BTC future ETFs Regain Attraction
Bitcoin (BTC), the world’s largest cryptocurrency had a very rough 2022 as its price dropped by a massive 75% from its all time high (ATH). However, reports are picturing a positive graph for the Bitcoin price as BTC future ETFs are regaining attraction.
Tough road for Bitcoin ETFs?
According to a report by the Financial Times, 2022 saw investors getting into BTC futures ETFs despite a major drop in Bitcoin price. It mentioned that investors added around $241 million of funds into 6 US bitcoin future ETFs in 2022.
However, the majority of the funds (approx $198 million) came in after June. This was marked as the beginning of the crypto “deep freeze” by Bitpay, a Bitcoin payment service provider.
The US financial watchdog, Securities and Exchange Commission (SEC) is yet to approve any Exchange-traded fund that directly invests in Bitcoin. The Commission cited that there are issues like market manipulation and fraud.
Meanwhile, the SEC has approved the ETFs which invest in Bitcoin futures stating that this option is safer and better for investors. This can prove to be a positive sign for Bitcoin Price.
The report depicts that ProSharees launched its Bitcoin Strategy ETF, which was labeled as the first BTC futures ETF. The fund saw a value inflow of around $1.2 billion in just 2 days. However, the assets tumbled to $549 million due to the heavy crypto market collapse.
Will BTC price recover ahead?
Data shows that investors were still putting their money in the ETFs during the heaviest fall of the crypto market. Around $100 million went into 16 Bitcoin related ETFs by the end of November 30. Most of the funds (Approx $92 million) went into the global X Blockchain ETF.
This signals that investors which are holding their investments in ETFs are hoping that the crypto market might recover soon. Recent collapses like SBF’s FTX have put a heavy dent in the market cap.
Bitcoin price which attained the ATH of $68,990 on November 8, 2021, has dropped to trade at $17,437. While its market cap has shrunk to stand at $335 billion.
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