What’s Next for Bitcoin ETFs? Top Analyst Weighs In on New SEC Approval

Bloomberg analyst Eric Balchunas has commented on yet another historic moment for the crypto market.

On Friday, the U.S. Securities and Exchange Commission (SEC) granted accelerated approval for 11 exchange-traded funds (ETFs) to list and trade options tied to spot Bitcoin prices on the New York Stock Exchange (NYSE).

According to Balchunas, the SEC approved the same thing for Nasdaq recently, so this news doesn’t come as a major surprise, despite being positive news for crypto in general.

They approved same thing for Nasdaq recently so not a big surprise but still good news as SEC was big hurdle. We hearing good things about the rest of process altho exact timeline for listing date still unclear. https://t.co/N9squVSXfS

— Eric Balchunas (@EricBalchunas) October 18, 2024

However, the actual listing will require more time, as the new options still need CFTC approval, Balchunas said.

Among the approved funds are:

• Fidelity Wise Origin Bitcoin Fund (FBTC.Z)
• ARK21Shares Bitcoin ETF
• Invesco Galaxy Bitcoin ETF (BTCO.Z)
• Grayscale Bitcoin Trust (GBTC.P)
• iShares Bitcoin Trust ETF (IBIT.O)

This marks an important step forward for institutional investors, as Bitcoin options provide a flexible and efficient tool for hedging and amplifying exposure to Bitcoin.

These options offer investors a way to speculate or hedge risks related to Bitcoin’s price movements in a regulated market, with less capital required compared to trading the actual asset.

While this development is positive for the crypto market, approval from the Commodity Futures Trading Commission (CFTC) is still needed before these options can officially list.

Earlier, the SEC approved options for BlackRock’s iShares Bitcoin Trust on Nasdaq, so this latest approval for the NYSE is a continuation of the broader trend toward increasing institutional access to Bitcoin through regulated financial instruments.

On Friday, BTC has reached the local high of $69,000, surpassing an important $68,000 resistance level.

Bitcoin closed Q3 with a modest 1.00% gain, recovering after dropping below $50,000 in August. As we head into Q4, market sentiment has turned bullish, supported by historical data showing an average return of 49.9% in Q4 since 2014.

This optimism is reinforced by a shift in market dynamics following the Federal Reserve’s interest rate cut of 50 basis points.

The cut boosted market activity, with Bitcoin’s aggregated open interest jumping 6% to nearly $27 billion. Bitcoin’s price surged past $62,000, reflecting a strong bullish response, and altcoins followed suit, outperforming U.S. equities, which saw volatile movements.

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