The US Securities and Exchange Commission (SEC) has approved options for spot Bitcoin ETFs, potentially significantly increasing their liquidity.

SEC Approval and Its Implications

On October 18, the SEC approved applications from the New York Stock Exchange and the Chicago Board Options Exchange for listing options on spot Bitcoin ETFs. This will enable 11 Bitcoin ETF providers to trade options on these platforms. According to QCP Capital, this decision will attract significant fund flows into Bitcoin ETFs, helping maintain high liquidity and steady institutional interest.

Impact of US Elections on the Market

The upcoming 2024 US presidential elections could amplify investor interest in risk-on assets such as Bitcoin. QCP Capital notes that the growth of US equities and the weakening Japanese yen may further strengthen risky sentiments, driving cryptocurrency prices up and supporting the current favorable trend known as Uptober. As the elections approach, interest in cryptocurrencies is increasing.

Critical Level for Bitcoin Growth

To confirm a potential breakout and end the current sideways movement, Bitcoin needs to close the week above $68,700. Popular analyst Rekt Capital believes this would signal further growth for the cryptocurrency. Significant ETF flows these days could serve as an additional driver for Bitcoin's market strengthening. Bitcoin ETFs surpassed the $20 billion milestone in fund flows within 10 months, significantly outpacing the pace at which gold-based ETFs reached a similar milestone.

The SEC's approval of options for Bitcoin ETFs could significantly increase liquidity and positively impact Bitcoin prices. The influence of the upcoming US elections may also raise interest in cryptocurrencies, supporting their growth amid strengthening market risk sentiments.