Price spike: Are whales front-running the approval of a Bitcoin futures ETF?

The current surge in Bitcoin prices could be due to speculation that an exchange-traded commodity will finally be approved within the next few weeks.

According to CoinGecko, BTC prices have risen 7% in the last 24 hours and soared 32% over the week. BTC bullish price action may only be a result of big bag holders front-running ahead of a U.S. Securities and Exchange Commission approval of futures ETFs.

Eric Balchunas, senior analyst at Bloomberg, responded on Oct. 7 to Anthony Pomplianos exclamation that “things will get insane” if the ETF was approved in Q4. Balchunas reiterated that he was 75% certain approval was imminent.

“We [are] confident that Bitcoin futures ETFs (like in two weeks) will be approved quickly, but we are less certain they will be as big a hit than a physically backed ETF. Its a big step, but it is important nonetheless.

According to Gary Genslers comments, an ETF futures product will likely be approved first. This allows institutional investors to get exposure to Bitcoin and place bets on its future price without actually owning any. Balchunas said that while he doesnt believe that an ETF physically-backed would be approved anytime soon, he believes it will eventually.

“Physical will occur at some point.” Timing is still a mystery. Its anyones guess. It could be months or even years.”

He stated that there were “multiple technical and anecdotal reasons” for his two-week futures ETF approval prediction. He also said that he was 75% confident.

Alex Kruger, a prominent analyst, also mentioned the EFT approval hype being a driver for current BTC price action:

This is how crypto markets trade now. A bitcoin ETF is the dominant narrative. You can either disappoint or not.
— Alex Kruger (@krugermacro) October 6, 2021

After analyzing the market activity, he said that he believed “folks” are behind a futures-based BTC-ETF.

Related:Futures-based Bitcoin ETF has 75% chance of approval in October

Matthew Dibb (co-founder and chief operating officer at Stack Funds) echoed this sentiment, commenting that “rumors of a BTC ETF determination later in the month are spurring further demand,” before adding, “This rally coincides with the anticipation of the Proshares ETF approval on Oct. 18.

According to Crypto Quant CEO Ki Young Ju who observed $1.6 billion market orders in just minutes on Oct. 6, whales are definitely buying.

Market orders were used to buy $1.6B worth of $BTC in 5 minutes. These short liquidations are smaller than $17M. This is more like whale buying, not cascade liquidations.
— Ki Young Ju jugiyeong (@ki_young_ju) October 6, 2021

Mike McGlone, a Bloomberg Intelligence commodity strategist, predicted that the SEC would approve a BTC Futures product by October end.

McGlone suggested that Bitcoin price resistance of $50K would soon turn to long-term support during the fourth quarter.