SEC Approval of Bitcoin ETF Options Boosts Liquidity Prospects Ahead of 2024 Elections

The recent SEC approval for Bitcoin ETF options is poised to enhance liquidity for the exchange-traded funds.

On Friday, the SEC greenlit applications from the New York Stock Exchange and the Chicago Board Options Exchange to introduce options for these long-awaited Bitcoin ETFs, allowing trading for 11 approved providers.

Trading firm QCP Capital noted in a research report that this move is likely to attract significant inflows, indicating strong institutional demand for Bitcoin. They suggested that the SEC’s decision will provide the liquidity necessary for these ETFs to maintain sustainable growth. Historically, ETFs have driven considerable investment in Bitcoin, with approximately 75% of new funds coming from them when Bitcoin exceeded 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 pointed out that rising U.S. equities and a weakening Japanese yen could bolster investor sentiment, potentially leading to higher valuations for risk-on assets as the election draws near.

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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 hit 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 highlighted 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.

Alexander Stefanov

With over 8 years of experience in the cryptocurrency and blockchain industry, Alexander is a seasoned content creator and market analyst dedicated to making digital assets more accessible and understandable. He specializes in breaking down complex crypto trends, analyzing market movements, and producing insightful content aimed at educating both newcomers and seasoned investors. Alexander has built a reputation for delivering timely and accurate analysis, while keeping a close eye on regulatory developments, emerging technologies, and macroeconomic trends that shape the future of digital finance. His work is rooted in a passion for innovation and a firm belief that widespread education is key to accelerating global crypto adoption.