With the ProShares Bitcoin Strategy ETF, the first SEC-approved Exchange Traded Fund for Bitcoin futures in the US has launched on the New York Stock Exchange.
All lights green for all-time high breakout
The crypto markets have reacted positively to the news with Bitcoin gaining +3.1% on the daily and topping at 64,500 USD. At the time of writing, Bitcoin trades for 64,200 USD, which only 0.6% short of its all-time high.
Should Bitcoin break out past this final resistance area, it can be expected that the current bullish trend will continue for a prolonged time. With the positive news surrounding Bitcoin ETFs, the chances for this to happen are now more than likely.
3. So now that we have defined what classifies a LTH, and we can compute the cost basis of both LTH & STH, what can this tell us?
Well if you take a look at the moments when STH realized price fell below LTH realized price you get quite the signal 👀 pic.twitter.com/sjSiH5THD7
— Dylan LeClair 🟠 (@DylanLeClair_) September 30, 2021
On the technical side, one of the most reliable technical indicators, Dylan LeClair’s Long-Term/Short-Term Holder Realized Price Index, has turned into a strong bullish signal in the beginning of October. As LeClair explains via Twitter:
BTC rises when the marginal seller is exhausted. This is why you see the cost basis of LTHs stay stagnant during explosive bull runs, while the cost basis of STHs (many of whom are new market participants) explode – there are simply not enough coins to go around.
Greyscale fund to be turned into Bitcoin ETF
The reason why the first Bitcoin ETF was so heavily anticipated is that it will open crypto exposure to a whole stream of new investors. Long story short: Bitcoin futures, or more accurately, a financial product based on Bitcoin futures, can now be traded on the world’s largest stock exchange. The fact that it’s “only” futures comes with a few caveats though.
First of all, this means that they will not track the spot price of Bitcoin with full accuracy. What’s even more important is that the new investors who are now coming onto the field don’t impact the price of Bitcoin, since they are not buying on the spot market.
Enter Greyscale, who have now announced that their flagship product, the Greyscale Bitcoin Trust will be converted into a Bitcoin spot ETF. Furthermore, ProShares seeks to gain at least some exposure to “actual Bitcoins” as well, just like most of the other ETFs that are still awaiting approval by the SEC.