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Bitcoin ETF's Date With NYSE Fuels Bets on $100K BTC by Year-End

CryptocurrencyOct 18, 2021 03:51PM ET
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© Reuters.

By Yasin Ebrahim

Investing.com – Bitcoin has soared in recent weeks ahead of the launch of a futures-based exchange traded fund, but the bitcoin bulls see plenty of gains still up for grabs as bets on $100,000 by year-end heat up.

BTC/USD rose 1.3% to $61,327, and had hit an intraday high of $62,623 just shy of its record high of $64,778.

The futures-based exchange-traded fund from ProShares will begin trading Tuesday on the NYSE under the ticker "BITO."

A public listed ETF is expected to put BTC on the radar of investors, who are keen on the popular cryptocurrency, but prefer exposure in a more accessible way.

The potential widening of the crypto investor base, hasn't gone unnoticed among bitcoin bulls.  

Current trading action in derivative markets suggests that traders believe the popular cryptocurrency will not only advance to eclipse its prior record high, but also top 100,000 by year-end.

The favored options contracts [on bitcoin] appear to be call options with strike prices above $100,000 … expiring at the end of the year," Glassnode said in its weekly on-chain report.

"The open interest in call options dwarfs that in put options, aligning with the overall bullish market sentiment."

Ahead of the launch of a BTC futures-based ETF, heated debate continues on whether a futures-based ETF is the most suitable investment vehicle to drive up crypto adoption.

Some argue as a bitcoin futures exchange-traded fund doesn’t directly own or hold bitcoin, but rather bitcoin futures, it won’t do a very good job of tracking the price of bitcoin, potentially leading to under performance.

Simeon Hyman, global investment strategies at ProShares, however, downplayed the risk.

"There's a lot of evidence from experts that the futures market if anything is a better place for price discovery," Hyman said Tuesday in an interview with CNBC. "The CME futures market, a regulated place, and actually trades more volume than the largest US crypto exchange."

For all the bullish speculation, however, there is one group of investors that need to hold onto their crypto to keep the bull run alive: the long-term holders.

These long-term holders, or LTH, are starting to show signs of itchy fingers to cash in profits. With about 98% of BTC still held at an unrealized profit, a meaningful jump in traders cashing in, or realizing, their profit could take the wind out of bitcoin's sails. 

"Over the past week, we can see a slight softening of the LTH net position change metric. This suggests a degree of LTH spending is occurring as prices rally above $60,000," Glassnode noted in its report.

For the moment, however, there is enough demand to keep dip-buying healthy.

"Whilst we have now confirmed that profitable coins are on the move, these metrics indicate that current demand is sufficient to absorb any sell-side pressure applied," Glassnode added.

Bitcoin ETF's Date With NYSE Fuels Bets on $100K BTC by Year-End
 

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Comments (11)
Rodney Dangerfield
Rodney Dangerfield Oct 19, 2021 1:12AM ET
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there's nowhere I trust more with my money than the internet and whatever programs it runs and my power company those two individuals are highly trustworthy let's pull the trigger on this cryptocurrency thing
Millennial Metals
Millennial Metals Oct 18, 2021 8:58PM ET
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This article makes me want to sell all of my bitcoin
cameron vogt
cameron vogt Oct 18, 2021 8:35PM ET
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Excited where things will lead to by end of december
peter neal
peter neal Oct 18, 2021 6:16PM ET
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The ETF will crash it. Too easy to sell it. Make just as much shorting.
Kenton Jenkins
Kenton Jenkins Oct 18, 2021 5:56PM ET
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Euphoria at the end of a strong bull run?? you hear about Bitcoin everywhere you turn and yet I've never seen one. you can eat it, you can't polish it you can't do much of a damn thing with it. .02cents
Mahamiyyee Yusufi
Mahamiyyee Yusufi Oct 18, 2021 5:03PM ET
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Mahamiyyee
Honest Abe
HonestyPays Oct 18, 2021 5:00PM ET
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it's an ETF about nothing Jerry....An ETF about nothing huh...I think you may have something...
Robin Espinal
Robin Espinal Oct 18, 2021 5:00PM ET
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No worries it aint a spot etf…
Honest Abe
HonestyPays Oct 18, 2021 4:58PM ET
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Geez, the institutional criminals are always thinking of ways to scam the sheep.
Koleha Cobbs
Koleha Cobbs Oct 18, 2021 4:37PM ET
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Is it good
Mart Bab
Rubberduck1973 Oct 18, 2021 4:05PM ET
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Most people I know are shorting
Adnan Azam
Adnan Azam Oct 18, 2021 4:05PM ET
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They're not so smart .. this ain't the time to short. It will hurt the people you know. Huge margin calls for them
Terrazas Victim
Terrazas Victim Oct 18, 2021 4:05PM ET
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Adnan Azam not everyone shorts on margin
Bonney Lake
Bonney Lake Oct 18, 2021 4:05PM ET
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hodl!
Lawrenti Berija
Lawrenti Berija Oct 18, 2021 4:05PM ET
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Trottel?
 
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