The cryptocurrency world is buzzing with expectations, putting the U.S. Securities and Exchange Commission (SEC) under the spotlight as major decision dates for cryptocurrency exchange-traded funds (ETFs) approach. According to information from the New York Digital Investment Group (NYDIG) blog, several critical dates are approaching, each of which will have significant consequences for the cryptocurrency market. Here are the details…
October 13 is the critical first date for cryptocurrencies
The first date you should mark on your calendar is October 13, 2023. This marks the last day for the SEC to appeal the Grayscale case decision. The outcome of this appeal will provide important information about the regulator’s stance on spot ETFs and its approach to the rapidly evolving cryptocurrency market. The decision will be closely watched by market participants as it could have a profound impact on the future of cryptocurrency ETFs.
October 16 is also important
Just three days later, on October 16, the SEC is due to respond to Bitwise Bitcoin ETP Trust. This answer will determine the fate of Bitwise’s Bitcoin exchange-traded product (ETP). The outcome will shape the competitive landscape for cryptocurrency investment products and influence investor sentiment.
What will happen on October 17?
The next day, October 17, is significant as the SEC is due to issue a response to Nasdaq’s request to list the iShares Bitcoin Fund. The potential approval of this ETF could open new avenues for investors to gain exposure to Bitcoin through traditional financial markets.
There is volatility in the crypto market
Amidst these upcoming regulatory deadlines, the cryptocurrency options market has witnessed an increase in forward volatility. Investors are bracing themselves for potentially significant movements in cryptocurrency spot prices around these key ETF decision dates. In particular, out-of-the-money (ATM) options for mid-October saw a dramatic increase in forward volatility. From October 13, 2023 to October 20, 2023, forward volatility increased by 9.6 points. This increase indicates that the market expects a single-day fluctuation of 5.5% in Bitcoin’s spot price during this critical period.
It’s worth noting that the SEC has historically tended to hold off on decisions until a few days before deadlines, although it technically has the authority to respond at any time up to the deadlines. This practice contributes to the increasing uncertainty in the cryptocurrency market, especially for investors who eagerly await these important decisions. While the cryptocurrency world eagerly awaits the SEC’s decisions regarding these critical ETFs, increasing volatility in the options market underscores the high expectations and uncertainty prevailing in the industry. Traders are preparing for potential price fluctuations, and the SEC’s decisions are likely to have a significant impact on the cryptocurrency market as a whole.
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