10.11.2023 – Told you so: Hopes for the approval of new spot-based index funds are boosting Bitcoin, Ether and co. Ether has ignited the price turbo after the registration of the iShares Ethereum Trust in Delaware. Now it’s the stock exchange supervisory authority’s turn.
No wonder that Ether rallied, here is the daily chart: iShares is backed by Blackrock, one of the largest asset managers in the world. The bulls are dreaming of huge amounts of money flowing into cryptos from previously skeptical, wealthy investors.
Source: Bernstein Bank GmbH
Of course, Bitcoin has also benefited from the hope of access to more investor money. That’s why we’re including two charts in today’s report, including the daily view.
Source: Bernstein Bank GmbH
The “Coin Telegraph” summed up the new gold-rush mood yesterday as follows: “today, Nov. 9, marks the start of the period during which the long-awaited spot Bitcoin ETF approval announcement from regulators could theoretically come.”
“Bloomberg Intelligence” also blew the same horn: “We still believe 90% chance by Jan 10 for spot Bitcoin ETF approvals.” Should these approvals come sooner, there will be windows with a wave for all outstanding applications. Currently, a dozen investment firms are waiting for their spot-based ETFs to be approved by the SEC.
Short squeeze
The bears assume that the authority will capitulate. According to “CoinDesk”, shorties in Asia have liquidated positions worth almost 50 million dollars in just four hours – a veritable short squeeze is underway.
And the icing on the cake is a statement from Goldman Sachs. According to this, institutional investors in particular have recently diverted a lot of capital into existing futures investments in cryptos. The inflow of funds in the week ending October 27 amounted to 437 million dollars – the largest weekly flow since July 2022.
150.000
It gets even better – we’ve reserved the close for a mega-bull: US asset manager Bernstein – no relation or affinity to your trusted CFD broker – sees BTC hitting 150,000 dollars by mid-2025. The reasons are the upcoming halving and the probable approval of the first spot Bitcoin ETFs.
To conclude, let’s pour a little oil on the waves: it is quite possible that many investors will cash out when the good news comes – sell the news. Or the SEC will play spoilsport. Whether long or short – Bernstein Bank wishes you successful trades and investments!
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