CME Investors eagerly anticipate the approval of Bitcoin ETF for spot trading

Investors eagerly await CME's approval of Bitcoin ETF for spot trading

Author: Katherine Ross, Blockworks; Translator: Song Xue, LianGuai

Gio Viciioso, the head of CME’s cryptocurrency business, said his company is “prepared” for the Bitcoin rally that happened on Tuesday.

Bitcoin briefly touched $35,000 on Monday before stabilizing around $33,000. The hope for approval of a Bitcoin ETF in the spot market has fueled this rally, but it may not be until early next year that we see the approval of an ETF.

Viciioso said, “Investors overall are excited about the approval of a Bitcoin ETF in the spot market.”

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It’s not just retail investors. Viciioso pointed out that there are a diverse range of participants entering this field, “including cryptocurrency investors and funds focused on cryptocurrencies. But we also see some institutional macro hedge funds and banks active in this area.”

He continued to say that there is a “new interest” and “appetite” for cryptocurrencies, especially Bitcoin.

Viciioso’s comments are supported by the CME’s third-quarter report, which found that interest in Bitcoin and Ethereum derivatives has reached a high.

Although Viciioso’s comments align with other analysts that the rally may have some foundation, it may still be too early to say that cryptocurrency spring is here.

<p"Predicting the future is difficult," he said. But the momentum in the market after CoinTelegraph incorrectly reported that BlackRock's Bitcoin ETF had been approved by the U.S. Securities and Exchange Commission suggests that the "investor [community] is preparing for this specific event and positioning portfolios accordingly."

Viciioso is not the only one who thinks this way.

Callie Cox of eToro said on Tuesday, “I’m not sure if it’s cryptocurrency springtime right now, but there certainly seem to be a lot of positive catalysts for cryptocurrencies.”

Meanwhile, Michael Silberberg, Head of Investor Relations at Alt Tab Capital, believes that with the potential catalysts of approval for a spot Bitcoin ETF and the halving, this rally could continue until April next year.

With the halving looming, Bitcoin is playing the role of a safe haven in the current market, and wealth management institutions with trillions of dollars have entered into a market with a market cap of only about $2 trillion. I expect this is just the beginning and it will continue until April next year.”

Silberberg said, “Honestly, I’m surprised by how long this rally has taken, but overall, the longer the consolidation period, the bigger the next move.”

However, Viciioso pointed out that it’s not just the potential of a spot Bitcoin ETF, as “institutions are now discussing tokenization and how they can deploy or adopt tokenization strategies in their business.”

“As a result, this has sparked more interest in Bitcoin and Ethereum, because… the foundation for tokenization is blockchain technology. We are seeing more and more institutions discussing how to implement this technology, and I believe it also helps drive the value of various tokens, with Bitcoin at the forefront.”

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