If the price of Bitcoin BTC -0.53% hovers, around $43,200 then the estimated value of these options would be $185 million. The dominance of options will be noticeable when the price rests between $39,000 and $40,000. However if it surges to a range of $44,000 $45,000 call options will enjoy an advantage.
In this scenario both sides participating in the options market have motives to influence the price of Bitcoin. Deribit, a player in the options market holds open contracts worth a $7.7 billion followed by the Chicago Mercantile Exchange (CME) with open contracts valued at around $1.38 billion. The anticipated approval of Bitcoin spot exchange traded funds (ETFs) is significantly impacting Decembers options expiration.
Recent news reports revealed that the Korean government plans to introduce a public service asset declaration service starting next year that will incorporate cryptocurrency holdings registration.
In terms of interactions with ETF applicants there has been a shift in approach from rejection to dialogue by the U.S Securities and Exchange Commission (SEC) which is seen as a positive signal and heightens the chances of ETF approval in January. Previously Grayscale reached an agreement, with SEC after which its parent company DCGs director Barry Selbert officially resigned. Additionally Grayscale owes money to Genesis as it is their parent company.
Following Barry Selberts resignation Grayscale swiftly submitted a revised application, for an ETF. In the modified document they decided to forego the cash creation aspect. Instead focus on transforming GBTC into a spot Bitcoin ETF. This move could be beneficial for companies that already hold Bitcoin as it enables them to issue ETFs backed by Bitcoin. However for those with holdings purchasing additional coins with cash may not be advantageous.
Initially Grayscale had plans to directly issue ETFs using their reserves. However the SEC. Prohibited this approach pushing Grayscale to find a compromise by issuing ETFs with cash. Companies equipped with liquidity and efficient systems will have an edge in navigating this process. Notably Tether recently issued a $1 billion in USDT stablecoins—a move that might signal their preparedness for developments in this area. Tether attributed the growth of USDT stablecoins to the markets high expectations surrounding the introduction of a Bitcoin spot ETF. Many companies are actively leveraging this trend by accumulating amounts of Bitcoin.
While there is a probability—over 90%—that approval for the Bitcoin spot ETF will be granted between January 8 and January 10 it is important to note that nothing is certain. The timeline could experience delays or proceed as planned—it remains unpredictable.
For cryptocurrencies another significant event is the lawsuit, between Coinbase and the SEC. The result of this case will have an impact, on the regulations governing numerous other cryptocurrencies, such, as Solana SOL 1.31%, Chainlink LINK -1.91% and Algorand ALGO 0.30%. It’s still uncertain how the lawsuit will conclude as both sides are presenting their arguments to the judge.
Regarding the XRP XRP -1.08% lawsuit even though its not officially recognized as a cryptocurrency we can anticipate some implications based on the outcome of this dispute. These lawsuits hold importance within the cryptocurrency market. Will shape the future progress of many cryptocurrencies.