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These 10 Bitcoin price indicators say BTC is now a buy or ‘strong buy’

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Bitcoin (BTC) is a firm “buy” according to a range of on-chain indicators that are flashing bullish this week.

Collected by on-chain monitoring resource CryptoQuant, a total of ten indicators are currently telling investors to enter the market now.

CryptoQuant: Bitcoin indicators “healthy”

Of the eleven items that form CryptoQuant’s market overview, eight are classified as “buy” and two as “strong buy” for Bitcoin. Only one is “neutral,” while none are “sell.”

“Long-term $BTC on-chain indicators look healthy,” CryptoQuant summarized on Twitter.

The two strongest buy signals come from the so-called stablecoin supply ratio (SSR) and exchange stablecoin reserves.

As Cointelegraph recently reported, both indicators have already given bullish hints about trader sentiment, and continue despite mixed price activity.

SSR refers to the purchasing power of stablecoin holders relative to the Bitcoin price. Even at $11,400 late last month, buyer support was strong, and conditions remain ideal at current price levels.

Bitcoin stablecoin supply ratio historical chart. Source: CryptoQuant

BTC technicals are in the green

The indicators add to the overall positive impression being given by Bitcoin’s technicals this month. 

In terms of network fundamentals, hash rate and difficulty are both either at or shortly set to hit all-time highs, underscoring miners’ long-term optimism.

This week, statistician Willy Woo pointed to several other aspects showing that price action should now be upwards rather than downwards.

PlanB, the creator of the stock-to-flow Bitcoin price models, meanwhile called for BTC/USD to begin its next long-term leg up from $10,000 towards $100,000, pointing to the latest incarnation of his metric.

The only cautious words have come from those concerned about non-technical factors, such as global macro markets. Robert Kiyosaki, the author of “Rich Dad Poor Dad,” warned on Tuesday that the discovery of a successful coronavirus vaccine alone would be enough to “crash” Bitcoin and other safe havens, at least in the near term.





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French fund manager launches EU-regulated ETF that tracks Bitcoin price

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Paris-based derivatives fund manager Melanion Capital has launched a new, EU-regulated fund that aims to track the price of Bitcoin at a correlation of up to 90%.

The fund is the first of its kind to be issued under the European Union’s UCITS umbrella – an acronym for “undertakings for the collective investment in transferable securities.” According to the European Commission’s data, UCITS-compliant funds account for roughly 75% of all collective investments by small investors in Europe. UCITS provides a framework for regulation at the European, rather than national, level and places exacting demands on fund managers.

Melanion Capital’s fund, called the Melanion BTC Equities Universe UCITS ETF, uses a methodology based on beta weighting to “bridge the gap” between equities and Bitcoin. Accordingly, it tracks a basket of up to 30 stocks in sectors like crypto mining and blockchain development, which Melanonion claims results in a correlation to BTC price of up to 90%. 

Cyril Sabbagh, Head of ETF at Melanion Capital, has pitched the product as an opportunity for investors to gain exposure to Bitcoin while eliminating risks like loss or piracy:

“By investing in equities replicating the Bitcoin performance, investors can achieve diversified asset allocation that was not available before. Given Bitcoin’s absence of correlation to traditional assets and the ETF’s UCITS character, allocators should certainly be interested.”

Melanion CEO Jad Comair has told reporters that getting the fund approved by France’s Autorité des marchés financiers [AMF] was “a real challenge because of the sensibilities and politics currently surrounding Bitcoin and Bitcoin investing.” As previously reported, there is no shortage of Bitcoin exchange-traded products (ETPs) listed in Europe, yet none of these have been UCITS-compliant. 

Crypto mining equities account for the lion’s share of the top 10 holdings in the “Melanion Bitcoin Exposure Index” tracked by Melanion’s ETF: in order of weighting, these are currently Marathon Patent, Riot Blockchain, HIVE Blockchain, Argo Blockchain, Hut 8 Mining, Other equities, from segments like crypto banking services and crypto asset management and trading, include Arcane Crypto AB, Microstrategy and Future Fintech.

Calculated by the German fintech BITA, the index constituents are, as Melanion has outlined, weighted according to the beta coefficient against Bitcoin, which is “capped based on liquidity, and rebalanced and reconstituted quarterly.” The ETF will initially be listed on Euronext in Paris and charge a management fee of 0.75%.

Related: Fund management firm Global X files with the SEC for a Bitcoin ETF

With ever more investment vehicles targeting the digital asset sector, regulatory approval for a Bitcoin ETF remains a fraught prospect in several jurisdictions, particularly the United States. Greg King, CEO of Osprey Funds, has nonetheless recently made the case that the consistently high number of Bitcoin ETF applications in the U.S. earlier this year – despite U.S. regulators’ longstanding reluctance to approve them – contributed towards Bitcoin’s extraordinary 2021 bull run.