Smart Money Front Running Retail Bitcoin

November 1, 2021

Cycling On-Chain is a month-to-month column that makes use of on-chain and price-related knowledge to raised perceive current bitcoin market actions and estimate the place we’re within the cycle. This sixth version discusses the influence of the newly launched futures ETFs, final month’s all-time excessive, promote strain from miners and long-term bitcoin holders, retail exercise and concludes with the outcomes of our month-to-month ballot and halving cycle roadmap.

Bitcoin ETF Sparks Bitcoin Futures Demand

Early October 2021, rumors popped up {that a} futures-based bitcoin ETF may be accepted. This got here into fruition when the ProShares Bitcoin Strategy ETF grew to become the primary U.S. bitcoin ETF to start out buying and selling on October 19. Despite this ETF being a extremely anticipated product, its reached buying and selling volumes and belongings below administration throughout the first few days shocked many. A second ETF was launched not lengthy after, in what seems to be the beginning of a brand new circulation of institutional bitcoin-related automobiles which might be coming to market. The launch of those futures ETFs attracted quite a lot of demand for bitcoin futures, probably by establishments that had been fascinated with getting bitcoin publicity however weren’t ready or allowed to straight purchase the asset itself or use different beforehand current merchandise. The influence of this new influx of market individuals is especially seen within the quantity of open curiosity on CME’s bitcoin futures that had been closely purchased up by the ProShares Bitcoin Strategy ETF (determine 1).

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