Spot Bitcoin ETF, a hugely anticipated and speculated topic for a long. The Securities and Exchange Commission is set to make its decision on the approval of Bitcoin-Exchange Traded Funds this week on January 10. As the cryptocurrency market holds its breath, derivatives traders have already taken a bet, with open interest in bitcoin futures reaching an all-time high of $20 billion in early December.
Open Interest Rise Nearly 20 Billion
According to the Coinglass data, the uptick in open interest which is nearly now 20 billion suggests that traders are optimistic about the SEC’s potential green light for several ETF applications. If approved, these ETFs would provide investors with a regulated and convenient way to gain exposure to the volatile world of cryptocurrencies. The major impact on the market could be significant, as the ETFs can attract institutional investors and provide greater liquidity to the market.
Impact on Bitcoin Price
The growing interest and craze among investors has affected the Bitcoin price because, since yesterday, it almost surged to $47,000, which is 19 months high since April 2022. The bitcoin surge might depend on several recent factors, as many prominent figures in the crypto space are speculating that ETF approval is on the horizon, as well as Gary Gensler’s tweet on X (Twitter) yesterday about how to be cautious while investing in crypto.
Another factor is that the biggest institutional players like BlackRock, Ark, Fidelity, Invesco, Galaxy Digital, WisdomTree, and Valkyrie have submitted their final Form S-1 filings to the SEC. Which increased excitement in the whole crypto industry.
To conclude, this excitement and buzz among investors and traders is unstoppable as the ETF approval date looms on the horizon.
