FinancialCentre Analyst Likes ProShares Bitcoin Strategy ETF, which Rises in Trading Debut, pushing BTC Higher

London, England, 2nd Nov 2021, ZEXPRWIRE, Bitcoin hits a six-month high, with the first bitcoin futures ETF on the market completing its initial day. One of the FinancialCentre’s broker, Chris Fisher, expressed his opinion about this recent development in the crypto world. As the ProShares Bitcoin Strategy ETF (NYSE: BITO), the first bitcoin-related exchange-traded fund to trade in the United States, debuted on Tuesday, bitcoin rose to a six-month high of around $63,000.\

In a recent interview, the broker says by the end of Monday’s trading, LABOR was up 4.65 per cent at $41.80 per share. The ETF’s trading volume had reached 23.9 million shares by 4:02 p.m., making it one of the top ETF debuts in history, based on the closing price.

Because of its focus on bitcoin futures contracts traded on the Chicago Mercantile Exchange, BITO is designed to invest in bitcoin futures contracts rather than the cryptocurrency itself, which is one factor why some experts don’t believe it will have a significant impact on BTC’s spot price.

“ I don’t think the introduction of futures ETFs will have a significant impact on the price of Bitcoin, but we do anticipate it will cause a small dip because it’s likely to make spot BTC more accessible to investors.”

The broker also mentioned that contango could cause losses for some investors in commodity ETFs that use futures contracts. Contango occurs when the futures price of a commodity is higher than the spot price. But these losses can be avoided by buying ETFs that hold actual commodities.

Bullish price action

The bitcoin price was bid in the spot market, gaining about 3% over the past 24 hours. According to the broker after, swiftly absorbing a large sell order on cryptocurrency exchange OKEx during Asian daytime trading, buyers were active once more on Tuesday.

Bitcoin’s price has been climbing steadily since the beginning of May, and it now appears to be approaching another bullish run. Last Monday, BTC surpassed its previous highest weekly close, hitting $61,500 for the first time in history. According to research from the broker, last week was one of the most decisive uptrends since January 2021.

Bitcoin options activity rises.

The broker says that bitcoin options trading activity has increased significantly over the previous week, reaching $1.5 billion as speculators anticipated the bitcoin futures ETF’s Tuesday debut.

The broker quoted:

“The number of Bitcoin-based derivatives contracts traded reached an all-time high on March 20. The current volume of Bitcoin futures contracts is unprecedented in history at this price point [about $60,000 BTC],”

Call options appear to make up most open offers, giving the option buyer the right to buy the underlying asset at a set price in the future.

Large open interest in call options with strike prices above $100,000 BTC expiring at the end of the year is visible in the graph below. According to the broker, this reflects overall bullish market sentiment.

Altcoin roundup

• DraftKings to become Polygon validator:

The broker informed that, in its latest bid to embrace the cryptocurrency sector, sports betting behemoth DraftKings intends to collaborate with Polygon Network to allow gamers to use their the broker informed that Inon-fungible tokens and secondary market transactions. This collaboration will also enable DraftKings to contribute governance for Polygon’s network, giving token holders the choice to offer suggestions.

• Facebook’s Novi wallet goes live with Paxos stable coin:

In the United States and Guatemala, Facebook’s digital wallet subsidiary Novi will go live in a trial program allowing users to trade the paxos dollar (USDP). Coinbase will administer custody for the project, the broker mentions. Once it obtains regulatory approval and becomes available.

Games Brings Augmented Reality to Board Games Using Algorand Blockchain:

The broker gives his opinion that the new Flex NBA product from Sequoia Games will be powered by Algorand, according to Eli Tan. Users build their own NBA team using physical collectable tiles known as “Flexagons,” representing NBA players s NFTs. It’s the latest game to use blockchain technology.

Conclusion:

A week ago, a large order for bitcoin futures on cryptocurrency exchange OKEx saw the contract’s price drop from around $60,000 BTC to just above $59,000. But following bullish price action over the weekend and another wave of demand during Asian trading today, it appears that bitcoin traders have been able to absorb this sell order.

Disclaimer: Our content is intended to be used for informational purposes only. It is very important to do your own research before making any investment based on your own personal circumstances. You should take independent financial advice from a professional in connection with, or independently research and verify, any information that you find on this article and wish to rely upon, whether for the purpose of making an investment decision or otherwise.

Source: FinancialCentre Analyst