FameEX Morning Crypto News Recap | December 25, 2023

Bitcoin Options Open Interest Surges Beyond $18 Billion in Anticipation of SEC's ETF Decision

On December 22, 2023, Bitcoin options open interest reached over $18 billion, a record high. Traders are increasingly using Bitcoin options as a tool for risk management and to speculate on Bitcoin's future price movements. This surge is largely driven by anticipation of the U.S. Securities and Exchange Commission's (SEC) impending decision on a spot Bitcoin exchange-traded fund (ETF).

SEC Chairman Gary Gensler Releases Cryptocurrency Cautions Amid Rising Expectations for Spot Bitcoin ETF Approval

SEC Chairman Gary Gensler recently cautioned investors about the risks in cryptocurrency investments, highlighting widespread noncompliance in the crypto sector. He noted that this noncompliance damages investor confidence, especially as many are left to deal with bankruptcy. Gensler's warnings coincide with the market's anticipation of imminent approvals for spot bitcoin exchange-traded funds (ETFs).

Blackrock Announces Intent to Invest $10 Million in Spot Bitcoin ETF on January 3

Blackrock, the world's largest asset manager, plans to invest $10 million in its spot bitcoin ETF on January 3. Following six meetings with the U.S. Securities and Exchange Commission (SEC) regarding its filing, Blackrock has shifted from its original in-kind model to a cash creation model, a change made to address SEC's concerns about the fund's structure.

Prediction Excitement — Surge in Bitcoin Price Forecasts as 2024 Nears

As 2023 concludes, Bitcoin has seen a remarkable 165% rise since January. Various experts and market participants anticipate even greater heights for Bitcoin in 2024. Recently, Markus Thielen of Matrixport's research division forecasted a possible approval of a spot bitcoin ETF in January, projecting that Bitcoin's value could exceed $50,000 by the end of the month.