Role of Exchanges in BTC Spot ETF Trading

[blazely]

This news about the supposed approval of a BlackRock ETF, which was later confirmed as false, has had significant repercussions in the cryptocurrency space.

 

 Earlier today, Cointelegraph reported the SEC's approval of a BlackRock ETF, triggering substantial market reactions due to the anticipation surrounding Bitcoin ETFs. However, this news turned out to be fake, resulting in numerous traders facing liquidations. 

 

Now, let's consider a hypothetical scenario where this news was accurate, and the price successfully broke through the 30k range. In this case, the speculation of Bitcoin reaching $100k would have appeared more feasible.

For those who had taken long positions in the market, this would have led to significant profits, while those in short positions would have faced unfavourable circumstances and those who have been using different strategies to accumulate would also be in significant profits well.

BlackRock's CEO, as reported by FOX, stated that today's rally surpassed mere rumours of a spot Bitcoin ETF approval.

Black Rock CEO reply

Now, that we have seen how impactful this news could be, one must consider how such developments can affect them. Will these events create a positive influence, motivating people to seek out Exchanges to trade Bitcoin, or will they continue trading as usual, seemingly unaffected by such news? What will be the basic Role of Exchanges in the long run?

[Wakanda]

The role of exchanges in BTC spot ETF trading cannot be overemphasized. Large volume of users embracing crypto do so by buying their BTC from one exchange or the other. Similarly, exchange enhance the liquidity of BTC ETFs which is a very vital indicator for investors as it ensures they can enter and exit position without causing significant price flunctuations.

[blazely]

5 hours ago, Wakanda said:

The role of exchanges in BTC spot ETF trading cannot be overemphasized. Large volume of users embracing crypto do so by buying their BTC from one exchange or the other. Similarly, exchange enhance the liquidity of BTC ETFs which is a very vital indicator for investors as it ensures they can enter and exit position without causing significant price fluctuations.

So that means exchanges would play a vital role when the ETF Is finally approved. It's nice that there are still good exchanges that stand out at this point that will play a vital role in the coming big news we all have been waiting for. Coupled with the fact some exchanges also have numerous means of trading BTC, just like BItget has both hot copy trading and normal copy trading and also some Products that could be used to trade and earn passively. So yeah, I believe there will be a significant increase in people using exchanges to trade

[BashJasper]

7 hours ago, Wakanda said:

The role of exchanges in BTC spot ETF trading cannot be overemphasized. Large volume of users embracing crypto do so by buying their BTC from one exchange or the other. Similarly, exchange enhance the liquidity of BTC ETFs which is a very vital indicator for investors as it ensures they can enter and exit position without causing significant price flunctuations.

Well, don't forget that BTC spot ETF will mostly be traded on stock exchanges, trust funds institutions and major financial institutions with state-backed regulation. What BTC ETF entails is like trading the paper version of a digital currency; it gives legitimacy to the underlying token or coin and incidentally increase acceptability and supply. 

What exchanges can do right now in preparation for trading BTC spot ETF is to invest in capacity building of their ecosystem to be able to compete favourably with these institution when the trading finally resumes.

[MongiIG]

Bitcoin Breaks Psychological 30k Level as Spot ETF Approval Hopes Grow
Oct 23, 2023 7:52 PM +02:00

Zain Vawda,
DailyFX Analyst

BITCOIN, CRYPTO KEY POINTS:

• Bitcoin Flies to 31k as Optimism Improves and Hopes for a Spot BTC Approval Rises.
• Coinbase is Looking to Make a Final Push on SEC Charges.
• Bulls Appear in Control of Bitcoin but the RSI Remains a Concern.

BITCOIN RALLY GATHERS PACE AS ETF OPTIMISM BUILDS

Bitcoin prices have continued their upward trajectory following a spike last week on the Blackrock Spot ETF application. The news turned out to be false but optimism continues to grow coupled with positive news for the cyrpto industry as a whole and the result is the current rally beyond the 30k mark.

Source: TradingView

As you can see from the crypto heatmap above and the majority of coins are higher today while crypto companies appear to be benefitting as well. Coinbase being an example and the reason I am using them lies in the pending court case between the SEC and Coinbase. The crypto platform is expected to make a final case on Tuesday for a judge to hopefully save it from the SEC and the charges of unregistered-securities.

According to sources familiar with the matter the Company is expected to double-down on familiar arguments. The SEC has not shown that any actual contracts existed while violating the “major question doctrine” that says Federal Agencies have no business regulating novel areas that are awaiting congressional action. Coinbase has been making a steady move higher from the back end of last week.

The recent rally has seen a shift in the Crypto fear and greed index which has improved from a 47 reading last week to 53 this week. This is just below the greed area and could be a good sign for both Bitcoin and Crypto markets as a whole.

Source: FinancialJuice

 

SPOT ETF APPROVAL COULD SEE HUGE INFLUX OF INSTITUTIONAL FUNDS

The main catalyst for this quarter in my opinion is the spot Bitcoin ETF with the spike last week a sign of the possibilities. We have heard from the Blackrock CEO among others who have said they are fielding an unprecedented number of calls from clients who would like to diversify their portfolios in Crypto as well.

I have spoken about this in length in my Q4 Bitcoin Outlook and it remains my assertion that a spot Bitcoin ETF could be game changer. Some analysts are predicting as much as 10-20% gains in Bitcoin on the immediate approval followed by a massive influx of institutional investors to the crypto market and predominantly Bitcoin of course.

TECHNICAL OUTLOOK AND FINAL THOUGHTS

From a technical standpoint BTCUSD is following the perfect breakout, retest and continuation model following a trendline break. We have no printed two golden cross patterns in quick succession as the 20-day MA has broken above the 50 and 100-day MAs.

A daily candle close above the 30k psychological mark remains key today and loos set to materialize. Immediate resistance rests at around the 31.5K mark and could result in some pullback as the 14-day RSI remains uncomfortably close to highs and may give bulls something to consider moving forward.

Key Levels to Keep an Eye On:

Support levels:

• 30500
• 30000
• 28900

Resistance levels:

• 31500
• 32000
• 32520

BTCUSD Daily Chart, October 23, 2023.

Source: TradingView, chart prepared by Zain Vawda

[blazely]

On 24/10/2023 at 15:02, MongiIG said:

Bitcoin Breaks Psychological 30k Level as Spot ETF Approval Hopes Grow
Oct 23, 2023 7:52 PM +02:00

Zain Vawda,
DailyFX Analyst

BITCOIN, CRYPTO KEY POINTS:

• Bitcoin Flies to 31k as Optimism Improves and Hopes for a Spot BTC Approval Rises.
• Coinbase is Looking to Make a Final Push on SEC Charges.
• Bulls Appear in Control of Bitcoin but the RSI Remains a Concern.

BITCOIN RALLY GATHERS PACE AS ETF OPTIMISM BUILDS

Bitcoin prices have continued their upward trajectory following a spike last week on the Blackrock Spot ETF application. The news turned out to be false but optimism continues to grow coupled with positive news for the cyrpto industry as a whole and the result is the current rally beyond the 30k mark.

Source: TradingView

As you can see from the crypto heatmap above and the majority of coins are higher today while crypto companies appear to be benefitting as well. Coinbase being an example and the reason I am using them lies in the pending court case between the SEC and Coinbase. The crypto platform is expected to make a final case on Tuesday for a judge to hopefully save it from the SEC and the charges of unregistered-securities.

According to sources familiar with the matter the Company is expected to double-down on familiar arguments. The SEC has not shown that any actual contracts existed while violating the “major question doctrine” that says Federal Agencies have no business regulating novel areas that are awaiting congressional action. Coinbase has been making a steady move higher from the back end of last week.

The recent rally has seen a shift in the Crypto fear and greed index which has improved from a 47 reading last week to 53 this week. This is just below the greed area and could be a good sign for both Bitcoin and Crypto markets as a whole.

Source: FinancialJuice

 

SPOT ETF APPROVAL COULD SEE HUGE INFLUX OF INSTITUTIONAL FUNDS

The main catalyst for this quarter in my opinion is the spot Bitcoin ETF with the spike last week a sign of the possibilities. We have heard from the Blackrock CEO among others who have said they are fielding an unprecedented number of calls from clients who would like to diversify their portfolios in Crypto as well.

I have spoken about this in length in my Q4 Bitcoin Outlook and it remains my assertion that a spot Bitcoin ETF could be game changer. Some analysts are predicting as much as 10-20% gains in Bitcoin on the immediate approval followed by a massive influx of institutional investors to the crypto market and predominantly Bitcoin of course.

TECHNICAL OUTLOOK AND FINAL THOUGHTS

From a technical standpoint BTCUSD is following the perfect breakout, retest and continuation model following a trendline break. We have no printed two golden cross patterns in quick succession as the 20-day MA has broken above the 50 and 100-day MAs.

A daily candle close above the 30k psychological mark remains key today and loos set to materialize. Immediate resistance rests at around the 31.5K mark and could result in some pullback as the 14-day RSI remains uncomfortably close to highs and may give bulls something to consider moving forward.

Key Levels to Keep an Eye On:

Support levels:

• 30500
• 30000
• 28900

Resistance levels:

• 31500
• 32000
• 32520

BTCUSD Daily Chart, October 23, 2023.

Source: TradingView, chart prepared by Zain Vawda

It's how this resistance level are now the key level in which people are looking at to short. If it does go lower, they say, "we will go into bearish state." But I'm still optimistic with $45k surge before the next fall. Still, I'll be using my Smart trend to get every curve of the trade

[Jaja24]

Feel like Exchanges like Bitget will play a crucial role in BTC spot ETF trading by providing a platform for investors to buy, sell, and trade ETF shares. They facilitate liquidity, price discovery, and secure storage of assets, enabling seamless participation in the BTC spot ETF market.