One of the biggest reasons that I chose to stick with the tethered RedSn0w 0.9.6 release for my iPhone 4 is because of the beta version's ongoing problems with Bluetooth support.
Up to this point, all of the beta versions of RedSn0w 0.9.7 -- an untethered jailbreak released by the Dev Team -- have thus far been devoid of Bluetooth capabilities. When using the beta, the Bluetooth option simply stated "Not Available."
With the Dev Team's latest update to the RedSnow beta, the Bluetooth hurdle has finally been eliminated, and now you can enjoy an untethered jailbreak with full Bluetooth support...