On October 23, the price of Bitcoin (BTC) broke through the $31,000 mark, hitting a nearly 4-month high, when the price of BTC was trading at $31,800.
The fresh upside comes as analysts and investors express excitement about the new development, which could signal the imminent launch of a spot Bitcoin ETF.
Two things caught my attention in the latest iShares (BlackRock) S-1 amendment:
– They have obtained CUSIP in preparation for launch
– They may want to seed with cash this month (which is earlier than I thought, but there may be nothing) pic.twitter.com/lmDaKxiIbB— Scott Johnson (@SGJohnsson) October 23, 2023
Speaking about Johnson’s post, Bloomberg senior ETF analyst Eric Balchunas warned his followers not to get too excited, explaining that the revised iShares (Blackrock) S-1 filing shows that BlackRock may be preparing to seed its ETF, and “and disclose it Shows one more step in the startup process. “
Balciunas clarified the process, explain:
“Background: A seed ETF is when a bank or broker-dealer (usually) provides initial funding to purchase a number of creation units (in this case, Bitcoin) in exchange for shares of the ETF that can be traded on the open market on day one. “
related: Ernst & Young says Bitcoin ETF will trigger huge demand from institutions
Bitcoin Spot Volume and Institutional Investor Activity Making Waves
From a market analysis perspective, Bitcoin’s rapid move above the $30,000 area appears to have been driven by spot trading volumes.
Data from CoinMetrics also shows an increase in weekly crypto-asset inflows into digital asset investment products from institutional investors.
CoinShares Analyst David Butterfill explain,
“Digital asset investment products saw inflows totaling $66 million for the fourth consecutive week, bringing inflows over the past four weeks to $179 million. Following recent price gains, total assets under management (AuM) have risen by 15% since the lows in early September. %, with the current total approaching $33 billion, the highest since mid-August.”
The volume is CME Futures It also doubled, reflecting renewed bullish sentiment among spot and futures traders regarding Bitcoin’s recent price action.
A rise in CME trading volume and spot volume, but not a surge in Binance futures open interest, suggests this week’s move may be more than just standard leverage enthusiast retail traders trying to establish margin longs based on recent price action and short positions.
From a technical analysis perspective, Bitcoin’s 20-day moving average has slightly broken above the 200-day moving average, which is a positive move, but many traders will wait for the so-called all-important golden cross, where the 50-day moving average breaks above 200 Daily moving average.
In terms of Bitcoin market structure on the longer time frame, consecutive daily closes above the $31,700 level would be noteworthy, as higher daily or weekly high candles above this level would place the price in a key position above the pivot point and into territory not seen since May 2022.
This article does not contain investment advice or recommendations. Every investment and trading activity involves risks, and readers should do their own research when making decisions.
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