Bitcoin ETF: BTC Derivatives Traders Wager $20 Bln On SEC Green Light

The U.S. Securities and Exchange Commission (SEC) is yet to decide on whether to approve Spot Bitcoin Exchange-traded Funds (ETFs). The crypto market is buzzing with several speculations as they await the anticipated approval. Moreover, Bitcoin (BTC) Derivatives traders are actively engaging, anticipating the SEC to greenlight several Spot Bitcoin ETFs this week.

Also Read: Just In: US SEC Issues Comments On Bitcoin ETF Form S-1s, Approval To Get Delayed?

Bitcoin Futures Open Interest Soars Above $19 Billion

The open interest in Bitcoin futures has steadily grown, reaching $19.2 billion in early December, its highest level in two years. Moreover, the total BTC futures open interest was recorded to be $19.53 billion on Tuesday, January 9, 2024, according to Coinglass stats. It indicates a significant increase compared to the BTC open interest figure of $18.06 billion recorded on Monday.

Despite multiple asset managers seeking Spot Bitcoin ETF approval since 2013, the SEC has consistently rejected them, expressing concerns about vulnerability to market manipulation. However, by the end of 2023, intensified discussions and lobbying led to the SEC engaging with firms interested in issuing ETFs. This has raised hopes for market debut of Bitcoin ETFs.

Throughout the year, Bitcoin’s funding rates across exchanges have risen, indicating traders’ willingness to pay more to maintain long positions. Funding rates have generally remained positive since October. In addition, both retail and institutional investors have been captivated by the excitement, leading to increased premiums for Bitcoin futures on the Chicago Mercantile Exchange (CME).

Moreover, the BTC price surged over $45,000 on January 2, following a remarkable 170% surge in 2023. On Tuesday, it hit the $47,000 mark, attaining a new high in two years. As of writing, the Bitcoin price was up by 6.28% as it traded at $46,695.14.

Whilst, the crypto’s market cap gained 6.30% to $914.98 billion. In addition, a spike in BTC trade volume was witnessed as the anticipated Spot Bitcoin ETF approval date nears. The 24-hour trade volume for BTC soared by 71.47% to $41.13 billion.

Spot Bitcoin ETF Final Amendments

As the January 10th deadline looms, major financial players have taken decisive steps in the race to launch the first Spot Bitcoin ETF in the U.S. BlackRock, Ark, Fidelity, Invesco, Galaxy Digital, WisdomTree, and Valkyrie have submitted final Form S-1 amendments to the SEC.

Furthermore, in a bid to attract investors, several applicants have announced significant fee reductions for their ETF products. Bitwise offered the lowest fee of 0.24%, sending ripples across its competitors. Moreover, ARK & 21Shares will waive their 0.25% fee for the first six months post-listing, applicable to the initial $1 billion in transactions.

Whilst, BlackRock has set an initial fee of 0.2% for the first six months or the first $5 billion in transactions. However, the company will revise the fee to 0.30% thereafter. Meanwhile, Grayscale offered to reduce its fee from 2% to 1.5%.

Also Read: WisdomTree, VanEck Spot Bitcoin ETF Tickers Listed On DTCC