The recent approval from the SEC for Bitcoin ETF options is expected to improve liquidity for the exchange-traded funds.
On Friday, the SEC approved applications from the New York Stock Exchange and the Chicago Board Options Exchange to introduce options for the long-awaited Bitcoin ETFs. This approval allows trading for 11 approved providers.
According to a research report by trading firm QCP Capital, this move is likely to attract significant inflows, indicating strong institutional demand for Bitcoin. They suggested that the SEC’s decision will provide the necessary liquidity for these ETFs to maintain sustainable growth. In the past, ETFs have driven considerable investment in Bitcoin, with approximately 75% of new funds coming from them when Bitcoin surpassed the $50,000 threshold earlier this year.
As the 2024 U.S. presidential elections approach, interest in riskier assets like Bitcoin may increase. QCP Capital noted that rising U.S. equities and a weakening Japanese yen could boost investor sentiment, potentially leading to higher valuations for risk-on assets as the election draws near.
READ MORE:
Bitcoin Poised to Surpass $70,000 Amid Political Changes, Says Matrixport
With Election Day just weeks away, former President Donald Trump’s chances of winning the election recently reached 60.2%, according to Cointelegraph.
For Bitcoin to break out of its current trading range, it must close the week above $68,700, as noted by crypto analyst Rekt Capital. He emphasized that such a close would indicate a bullish trend. This week’s favorable ETF inflows could support that breakout, as Bitcoin ETFs surpassed $20 billion in net flows just ten months after their launch, a milestone that took gold ETFs nearly five years to achieve.
