As an analyst with extensive experience in the crypto market, I find the recent approval of spot Bitcoin ETFs by the US SEC to be a significant step forward in mainstream adoption. The availability of options trading for the 11 approved Bitcoin ETF providers could lead to increased liquidity and sustainable inflows, potentially pushing Bitcoin’s price towards new all-time highs.
The potential for increased trading activity in Bitcoin ETFs becomes substantial following the most recent endorsement by the U.S. Securities and Exchange Commission (SEC).
On October 18th, the U.S. Securities and Exchange Commission granted permission for both the New York Stock Exchange (NYSE) and the Chicago Board Options Exchange (CBOE) to introduce Bitcoin (BTC) spot exchange-traded funds (ETFs) that have been eagerly awaited.
This will make options trading available for the 11 approved Bitcoin ETF providers.
According to the analysis of trading firm QCP Capital, published on October 19th, the approval of a Bitcoin ETF might lead to a substantial increase in investments.
“The consistent inflows into the ETF highlight that institutional demand remains strong. With this morning’s approval by the SEC’s approval for BTC ETF options to be listed on the NYSE, we believe this will provide the ETF with the needed liquidity to attract sustainable inflows.”
If Exchange Traded Funds (ETFs) keep seeing more investments, Bitcoin’s value could potentially hit a fresh record high. By February 15th, ETFs represented around 75% of the new Bitcoin investment, as its price soared above $50,000.
Risk-on sentiment to grow leading up to US presidential elections: QCP
In simpler terms, the 2024 U.S. presidential elections may boost investors’ willingness to take on risk by investing in assets like Bitcoin and other digital currencies.
This will help risk-on assets stage a rally leading up to the election, noted QCP Capital:
“With US equities close to all-time highs and the Japanese yen on a fresh weakening trend, risk-on sentiment will only grow stronger as we approach the US election. This will propel risk assets higher and support our Uptober narrative.”
People involved in financial markets are gearing up for the U.S. Election Day, which is just over two weeks away. According to CryptoMoon’s latest report, the chances of former president Donald Trump winning the presidential election have reached a new peak of 60.2%.
Bitcoin needs a weekly close above $68.7K
According to well-known cryptocurrency expert Rekt Capital, for Bitcoin to potentially break free from its current sideways movement (crab walk), it should end the week with a closing price above $68,700.
The analyst wrote in an Oct. 18 X post:
“On the cusp of confirming a breakout beyond the multi-month channel top resistance. A weekly close just like this would be bullish.”
This week’s surge in ETF investments into Bitcoin might contribute to a significant increase in its value, given that Bitcoin ETFs recently exceeded the $20 billion mark in cumulative inflows, just ten months after their launch on October 17th.
In contrast, it took Gold-based ETFs nearly five years to cross this same $20 billion milestone.
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2024-10-19 15:25