[Bitcoin Now] ETF Launch Expectations Grow... But Price Gains May Be Limited

By the 29th of Next Month, US SEC Decision Expected
Bitcoin Relative Strength Index Increases... Upside May Be Limited

[Image source=Yonhap News]

[Asia Economy Reporter Gong Byung-sun] The leading cryptocurrency Bitcoin slightly rose to the 66 million KRW range. Although expectations for the launch of Bitcoin-related exchange-traded funds (ETFs) are growing, analyses suggest that the future price increase will be limited.

According to the domestic cryptocurrency exchange Upbit, as of 3:02 PM on the 29th, Bitcoin recorded 66.52 million KRW, down 0.91% compared to the previous day. After hitting the 63 million KRW range on the 25th, it slightly increased over the weekend, reaching the 67 million KRW range.

This appears to be influenced by growing expectations for the launch of Bitcoin ETFs. The U.S. Securities and Exchange Commission (SEC) is expected to decide on the listing of Bitcoin ETFs before the 29th of next month (local time). Korea Investment & Securities analyzed that asset management companies have been consecutively attempting to list Bitcoin ETFs with the SEC, increasing anticipation for the launch. In fact, the world's largest asset management company Fidelity submitted preliminary registration documents to the SEC on the 24th. The overseas asset management company VanEck also resubmitted its listing application to the SEC on the 15th, following its initial submission at the end of December last year.

Bitcoin-related financial products are already being traded in some countries. On the 18th of last month, Bitcoin ETF trading began on the Toronto Stock Exchange in Canada. Switzerland has been trading exchange-traded products (ETPs) launched by the UK blockchain company Amun Crypto through the Swiss Exchange (SIX) since 2018. Amun Crypto's ETPs track indices not only for Bitcoin but also for altcoins such as Ethereum, Ripple, and Bitcoin Cash.

However, there are also analyses suggesting that the price increase will be limited. On the 27th, the cryptocurrency-focused foreign media CoinDesk pointed out that Bitcoin's Relative Strength Index (RSI) has risen, making a significant increase difficult. The RSI is an indicator that quantifies the strength of market price trends. Generally, an RSI of 30 or below indicates a buying opportunity, while 70 or above means the market is overheated and a decline is likely. According to Upbit, Bitcoin's RSI rose to about 88 around 12:20 AM that day. However, CoinDesk added that since December last year, Bitcoin prices have tended to rise at the end of each month.

Meanwhile, the Bank for International Settlements (BIS) expressed the opinion that Bitcoin is difficult to consider as currency. According to the U.S. economic media Bloomberg on the 25th, Beno?t Cœur?, head of the BIS Innovation Hub, said, "Due to volatility, cryptocurrencies cannot be regarded as currency," and "Central banks of various countries are preparing digital currencies equipped with liquidity and safety." Previously, Agust?n Carstens, Secretary General of the BIS, also claimed that "cryptocurrencies are used for illegal purposes."

This content was produced with the assistance of AI translation services.