Originally published on: October 19, 2024
Following the recent approval by the United States Securities and Exchange Commission (SEC) for spot Bitcoin exchange-traded funds (ETFs), significant liquidity is expected to surge in the market.
The USSEC greenlit applications from the New York Stock Exchange (NYSE) and the Chicago Board Options Exchange (CBOE) on Oct. 18 to list options for spot Bitcoin (BTC) ETFs, providing options trading for 11 approved Bitcoin ETF providers.
QCP Capital, a trading firm, believes that this approval could lead to a substantial increase in Bitcoin ETF inflows. According to their Oct. 19 research note, continued ETF inflows have the potential to push Bitcoin’s price to new all-time highs.
With ETFs accounting for about 75% of new investments in cryptocurrency when it surpassed the $50,000 mark, the upcoming 2024 US presidential elections could further boost investor appetite for risk-on assets like Bitcoin and other cryptocurrencies.
As market participants gear up for Election Day in less than three weeks, former president Donald Trump’s rising odds of winning the elections could contribute to a rally in risk-on assets, as noted by QCP Capital.
For a potential breakout from the current market trend, Bitcoin would need to close the week above $68,700, according to crypto analyst Rekt Capital. Positive ETF inflows this week have supported the market, with Bitcoin ETFs hitting a record $20 billion in total net flows on Oct. 17, just 10 months after launch.
In comparison, it took Gold-based ETFs nearly five years to reach the same milestone of $20 billion. This positive trend in the market hints at a bullish outlook for Bitcoin and the wider cryptocurrency market.
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