Bitcoin (BTC) exchange-traded funds (ETFs) in the United States yesterday reported outflows of more than $79 million, thus breaking a seven-day streak with positive capital flows.
The poor performance of financial instruments based on digital currency was boosted by the 134 million dollars that came out of the Ark 21Shares Bitcoin ETF(ARKB) of Ark Invest and 21Shares.
For its part, BlackRock’s iShares Bitcoin Trust (IBIT) led the money inflows with 42 million dollars. While Fidelity’s Fidelity Wise Origin Bitcoin Fund (FBTC) had income of $8 million.
Meanwhile, VanEck’s VanEck Bitcoin ETF (HODL) reported inflows of more than $3 million. The eight ETFs remaining did not record income or expenses yesterday, Tuesday, October 23, according to data from SosoValue.
Since its market launch in January 2024, the 12 ETFs based on bitcoin accumulate more than 21,000 million dollars.
Inflows and outflows of money in bitcoin ETFs since their market launch. Fountain: SosoValue.
The performance of financial products generated downward pressure on the BTC price which fell below the $67,000 line, as seen in the chart below. TradingView.
At the time of publishing this article, the price of the digital currency is $66,342.
BTC price so far this year. Fountain: TradingView.
As CriptoNoticias has explained, the BTC price she looks shocked by the performance of exchange-traded funds. The thing is that, due to their operation, the issuing companies need to have the digital currency created by Satoshi Nakamoto in their treasuries to maintain adequate support for the ETFs.
In other words, if there is demand for these funds, issuers must go to the market to buy BTC and, by simple law of supply and demand, its price rises. Otherwise, companies can get rid of the asset and that would generate downward pressure on the BTC price.
The market, waiting for the elections in the United States
As CriptoNoticias already reported, bitcoin and cryptocurrencies have become a relevant issue for the electoral contest on November 5 in the United States.
The candidate for the Republican Party, Donald Trump, has shown a position in favor of the sector throughout his campaign and He even launched a DeFi platform.
Her rival, Democratic Party candidate Kamala Harris, promised greater investment and a more friendly regulation for the development of the industry in the main financial power worldwide.
It is within this framework that some options traders have raised their expectations about the price of BTC and anticipate that it could reach an all-time high (ATH) of $80,000 at the end of November, no matter who the next president of the United States is.
For example, David Lawant, head of research at FalconX, told said to Bloomberg:
“I think the market consensus is that bitcoin is likely to perform well regardless of the election outcome. “Our analysis shows that options activity around the upcoming election exhibits a notable upward bias.”
David Lawant, director of FalconX.
Lawant mentions the introduction of ETF options which were approved by the United States Securities and Exchange Commission (SEC).
Both the New York Stock Exchange (NYSE) and the Chicago Options Exchange (Cboe) are authorized to trade options linked to multiple exchange-traded funds on the BTC spot price.
According to the memoranda issued by the organization led by Gary Gensler, the NYSE will be able to trade options on the Grayscale Bitcoin Trust (GBTC), the Grayscale Bitcoin Mini Trust (BTC) and the Bitwise Bitcoin ETF (BITB).
On the other hand, Cboe obtained approval to list and trade options on the Fidelity Wise Origin Bitcoin Fund (FBTC) and the ARK 21Shares Bitcoin ETF (ARKB).
In trading, options are financial derivatives which allow investors to buy or sell an underlying asset at a predetermined price on or before a stipulated date.
Options trading increases institutional interest in digital assetsin addition to providing greater liquidity and accessibility to investors.
Finally, it is worth noting that the options are seen as an additional tool for risk management and hedging positions in bitcoinwithout the need to directly own the digital asset.
Crypto Keynote USA
For the Latest Crypto News, Follow ©KeynoteUSA on Twitter Or Google News.
