By: Eva Baxter
As the U.S. Securities and Exchange Commission's decision on the first Bitcoin spot ETF looms, the crypto market holds its breath. Despite the uncertainty regarding the SEC's decision, the open interest in Bitcoin options on Deribit points towards a bullish sentiment in anticipation of significant price shifts in January. Dominating the options market is the call open interest with 162,694.50 BTC as compared to the put open interest at 65,952.20 BTC. This indicates most investors are speculating or hedging for an improvement in Bitcoin's price.
Investors are eagerly waiting to find out if the ETF will be approved or postponed once again. The ETF hopefuls have drafted 19b-4 filings and are awaiting phone conversations on S-1s. Despite the approvals expected in the course of next week, the timeline depends on the SEC's ability to efficiently review the comments and amendments.
While the immediate aftermath of an ETF approval may not witness a significant surge, crypto analyst Adam Cochran suggest that the move could have significant long-term outcomes. Investment advisors could possibly recommend their clients to diversify their portfolios by incorporating a small percentage into the ETF. According to some analysts, Bitcoin's price could gradually improve, potentially reaching a high of $500,000 per coin.
While taking a cautious approach towards the Bitcoin ETF, traders are reducing the use of borrowed money, indicating the pricing potential of the Bitcoin ETF may not have been fully realized. Bitcoin's price holding steady above $41,800, indicates a bullish outlook with the price performance being key to driving investor interest.
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