Bitcoin price crosses $ 56,000 as ETF discussions continue

Bitcoin (BTC) has hit a four-month high after raising $ 2,000 in just two hours on October 8.

BTC / USD (Bitstamp) 1-hour candlestick chart. Source: TradingView

BTC price in maximum of four months

The BTC / USD pair hit $ 56,150 on Bitstamp with further bullish momentum, according to data from Cointelegraph Markets Pro and TradingView.

The largest cryptocurrency spent Thursday consolidating after climbing as high as $ 55,800 on Wednesday.

While the expectation of an increase among investors continued, the possibility that US regulators would approve an exchange-traded fund (ETF) beyond price action and the possible consequences of this were high on the agenda.

Cryptocurrency investors consider it highly likely that a futures-based Bitcoin ETF will be approved this month, even if traditional spot-based products are rejected.

While crypto ETFs have struggled for approval for years, some market commentators have suggested that the ETF could do Bitcoin more harm than good. Futures-based ETFs in particular have come under fire this week.

“Few understand that if the Bitcoin ETF is approved, it will be based on futures,” said macro analyst Alex Krueger. He explained.

“Futures often trade much higher than the spot price. Therefore, the ETF will buy high and sell low during the roll-over. Assets in this state lose value.”

Krueger seeks to attract high-volume institutional clients because the futures-based alternative is too risky. added that the only option is a spot ETF.

The Grayscale Bitcoin Trust, whose performance is already affected by a potential ETF approval, is down 17 percent from the spot market as of Thursday.

The CEO of the company, Michael Sonnenshein, announced that they plan to convert all funds into ETFs in the future.

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