Bitcoin open interest peaks ahead of SEC’s ETF approval
Bitcoin open interest peaked by $840 million shortly after New Year 2024, driven by crypto traders betting on the 89 percent chance of the U.S. Securities and Exchange Commission (SEC) approving spot Bitcoin ETFs by mid-January, per reports.
Traders bet on the “Bitcoin ETF approved by Jan 15″ contract shares on prediction platform Polymarket, trading at 90 cents each, ahead of the SEC’s crucial decision that would influence market sentiment.
The contract successfully garnered “YES” bets worth $441,315, with only 10 percent of traders voting “NO” at press time. Some opposing traders voted “NO” on the contract to hedge their bets and make a profit if the SEC delayed their decision indefinitely after January 15.
“I don’t doubt the inevitability of a Bitcoin ETF, I doubt the SEC’s ability to work fast enough to say yes by January 15,” a Polymarket trader expressed skepticism.
Ongoing rumors said the SEC may announce approval starting January 3 for certain issuers. However, other reports indicated it is unlikely for the commission to issue the approval sooner, given their ongoing review of updated S-1 filings from Hashdex, VanEck, and other firms.
Surge in Bitcoin open interest
Recent findings by Arkham Intelligence indicated a surge in the Bitcoin open interest, consisting of the total number of outstanding Bitcoin futures or options contracts. This interest resulted in a $73.3 million liquidation, as investors persisted in betting on Bitcoin’s value even during bearish phases.
Arkham reported that the surge coincided with its recent breach of $45,000, setting new peak records for the cryptocurrency in the past 52 weeks. Since the record-breaking breach on January 2, Bitcoin has not dropped below $44,500.
Today, Bitcoin has a high-performing 6.96 percent increase rate and a whopping $31,752,415,573 trading volume thanks to its 18.79 percent rate increase.
Leading BRC20 coins, ORDI and SATS, posted strong performances ahead of mid-January. ORDI surged 165.32 percent in the past month, with a 132.15 percent volume increase since January 2. SATS rose by 26.74 percent, with a 126.30 percent volume increase during the same period.
If these trends persist, market leaders can expect increased investor interest and greater confidence in the Bitcoin market.
Angel Marinov is the Managing Editor at Coinlabz. With extensive knowledge of crypto payments and blockchain use cases, Angel is a trusted source of accurate and timely information
