Bitcoin exchange-traded funds (ETFs) could see a significant increase in liquidity, following the latest approval from the United States Securities and Exchange Commission (SEC).

On October 18, the SEC approved applications from the New York Stock Exchange (NYSE) and the Chicago Board Options Exchange (CBOE) to list long-awaited options on spot Bitcoin (BTC) exchange-traded funds.

This will allow options trading on 11 approved Bitcoin ETF providers.

The approval could significantly boost the flow of Bitcoin ETFs, according to trading firm QCP Capital, writing in an Oct. 19 research report:

“The continued inflows into the ETF illustrate that demand from institutional investors remains strong. With the SEC’s approval this morning for the BTC ETF options listed on the NYSE, we believe this will provide the liquidity needed to attract sustained inflows to the ETF.”

Continued inflows into ETFs could help Bitcoin hit a new record high. ETFs accounted for about 75% of new investment in the cryptocurrency as of Feb. 15, when it crossed the $50,000 mark.

BTC/USD, 1-year chart. Source: TinTucBitcoin

Risk sentiment expected to rise ahead of US presidential election: QCP

The upcoming 2024 US presidential election could significantly improve investment appetite for risk assets like Bitcoin and other cryptocurrencies.

This should help risk assets rally ahead of the election, QCP Capital notes:

“With US equities near record highs and the Japanese yen weakening, risk sentiment will only intensify as we approach the US election. This should push risk assets higher and support our Uptober narrative.”

Market participants are gearing up for the US Election Day, which is less than three weeks away. Polymarket’s odds of a Donald Trump victory rose to a record high of 60.2% on October 16, TinTucBitcoin reported.

Bitcoin needs to close the week above $68,700

To confirm a breakout from the current pattern, Bitcoin needs to end the week above $68,700, according to popular crypto analyst Rekt Capital.

The analyst wrote in a post on X on October 18:

“Close to confirming a break above the top of a multi-month resistance channel. A week ending like this would be positive.”

BTC/USD, 1-week chart. Source: Rekt Capital

A potential breakout could be aided by positive ETF inflows this week. Bitcoin ETFs surpassed a record $20 billion in total net inflows on October 17, just 10 months after their launch.

In contrast, it took gold-based ETFs nearly five years to cross the same $20 billion milestone.

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