Bitcoin Faces Influx of Institutional Investment Ahead of ETF Approval, Says 10T Holdings CEO
The founder and CEO of 10T Holdings, Dan Tapiero, believes that Bitcoin (BTC) is about to experience a significant increase in institutional investment. Tapiero’s optimism stems from the growing anticipation surrounding the approval of a United States exchange-traded fund (ETF) for Bitcoin.
As BTC/USD reached its highest point in 18 months, institutional interest in Bitcoin has already begun to shift. The open interest on CME Group’s Bitcoin futures markets, which have traditionally been favored by institutions for BTC derivatives, surpassed that of Binance for the first time this week.
Tapiero sees this as a pivotal moment for Bitcoin adoption. In a recent announcement, he stated, “Now begins the renewed drumbeat of ‘institutional adoption’ of Bitcoin. Real facts are driving this idea rather than hope. As CME BTC futures open interest surpasses Binance in the #1 spot, a torrent of capital from the traditional world is about to hit.”
The aggregate open interest of Bitcoin futures reached $17 billion on November 9, representing the highest point in seven months. Although the current tally stands at $15.5 billion, according to CoinGlass data, the optimism surrounding the ETF approval is widely shared.
QCP Capital, a trading firm, also highlighted the potential approval of a spot ETF for Ether (ETH) as a catalyst for the crypto market. In their market update, they wrote, “While we expect the approval for a spot BTC ETF to be delayed until January 2024, a new narrative surrounding a spot ETH ETF should be enough fuel for animal spirits to take hold once again with crypto prices steadily grinding higher towards the end of the year.”
However, QCP also cautioned investors to exercise caution due to a series of lower highs on Bitcoin’s daily relative strength index (RSI) values. This could indicate a potential cooling-off period after reaching new highs.
At the time of writing, BTC/USD was trading near $36,500, while ETH/USD had surpassed the $2,000 mark with a 4% increase on the day.
This article serves as informational content and does not provide investment advice or recommendations. Readers are encouraged to conduct their own research and analysis before making any investment decisions.