Bitcoin Rally Provoked by US ETF Launch is ‘Nearly Out of Room to Run’ + More Crypto News
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Even if the US approves spot Bitcoin exchange-traded funds (ETFs), some strategists say they expect the much-anticipated green light to be a “sell” the crypto news event for BTC because “it has run up so far so fast,” The Wall Street Journal reported.
Julio Moreno, head of research at the data provider CryptoQuant, commented that people who bought BTC at low prices are sitting on really high unrealized profits. “Historically, when that happens, the price tends to correct.”
Per Moreno, bitcoin could fall to $32,000 if traders decide to take some profits off the table following the ETF launch.
Many warn that approval from the Securities and Exchange Commission (SEC) is not guaranteed. This is especially the case given its history with crypto-related matters. However, if it does say ‘yes’, the SEC will likely approve all similar applications at the same time. They may do this to avoid any perceived favoritism.
Nate Geraci, president of investment-advisory firm ETF Store, argued that this “is completely unprecedented because historically we have not seen a situation where multiple issuers are going to be lined up to launch a high-demand product on the same day.”
If they all get approved, a fee war is expected to break out in the crowded market. This “could turn the race into a money-losing effort for some of the asset managers, at least in the short term.” Per the report, some started a market push, and others decided to compete on cost.
Per James Seyffart, an ETF analyst at Bloomberg Intelligence,
“It’s going to be brutal particularly for some of the smaller issuers to
Read more on cryptonews.com
