Can’t Spell Liquidity Without M-M How Major Market-Makers Could Boost Bitcoin ETF and Send BTC Price Soaring!

Major Market-Makers Discuss Possible Liquidity Support for BlackRock's Bitcoin ETF Approval Implications for BTC Price

Some of the global financial industry’s largest market-makers might jump in to provide liquidity for BlackRock if the firm’s spot Bitcoin Exchange Traded Fund (ETF) application is approved by the US Securities and Exchange Commission (SEC), reported CoinDesk on Tuesday citing a personal familiar with the matter. According to the source, Hudson River Trading, Jane Street and Virtu Financial have help talks with BlackRock regarding taking up a market-making role. BlackRock applied to set up a spot Bitcoin ETF back in June. Dozens of other major asset managers quickly followed with their own applications, boosting risk appetite in the Bitcoin market at the time amid optimism about renewed institutional interest in the world’s largest cryptocurrency by market capitalization. The fact that major market-makers are looking to step into the Bitcoin market could mark an important shift for trading conditions. Crypto exchange data firm Kaiko has reported deteriorating liquidity conditions for Bitcoin consistently over the past year, with Bloomberg reporting back in May that firms like Jane Street and Jump crypto had curtailed market-making activities amid regulatory uncertainty relating to major US crypto exchanges. Poor liquidity conditions mean that smaller sell/buy orders are able to have a larger impact on the BTC price, potentially leading to higher volatility. Worsening liquidity is also a sign of an unhealthy market and often come as an asset is experiencing a major downturn, which up until late 2023 Bitcoin was.

Institutional Adoption Tailwinds Set to Offer Continued Support to Bitcoin (BTC) Price

The US institutional adoption narrative has been a major tailwind for Bitcoin since dozens of spot Bitcoin ETF applications from major Wall Street firms were filed in June, ensuring that short-term market dips have continually been bought into. Indeed, Bitcoin recently pumped to fresh highs for the year in the mid-$30,000s after the SEC declined to appeal a legal defeat it sustained against digital asset firm Grayscale over their rejection of the firm’s application to turn their Bitcoin Trust (GBTC) into a spot ETF. Why keep fighting Grayscale if you are about to approve dozens of spot Bitcoin ETF applications in the coming months, including Grayscales’, officials at the SEC are likely thinking. Market participants thus remain highly confident that near-term approvals of spot Bitcoin ETFs in the US are highly likely, with JP Morgan recently predicting that dozens will gain approval as soon as January.

Indeed, it looks as though the Bitcoin market is on the cusp of entering a new era of institutional participation with major asset managers’ likely to see their spot Bitcoin ETFs go live soon, and a wave of market-makers likely to jump in to participate. At the very least, expect Bitcoin price dips to be aggressively bought into, with price risks remaining firmly tilted to the upside for now. Crypto financial services platform Matrixport recently forecast that Bitcoin would hit a minimum of $42,000 on spot ETF approvals in the US.

---

Did you hear the latest buzz in the financial world? It seems that if BlackRock’s spot Bitcoin Exchange Traded Fund (ETF) application gets approved, some big players from the global financial industry are ready to dive headfirst into providing liquidity for the firm. If that’s not exciting news, I don’t know what is!

• Crypto News: From Virtual Horror to Hashrate Surge
• Etherfuse Introduces “Stablebonds” to Shake Up the Mexican Bond Market
• Warren Buffett’s “crypto bet” up $130 million in 2023

According to the grapevine, Hudson River Trading, Jane Street, and Virtu Financial are in talks with BlackRock about taking up a market-making role. It’s like assembling a dream team of market wizards to support the Bitcoin ETF. It’s like Wonder Woman, Batman, and Superman joining forces to save the day!

But wait, there’s more! BlackRock was just the beginning. After their application, it was like a domino effect. Dozens of major asset managers rushed in with their own applications, igniting a spark of optimism in the Bitcoin market. It’s like Beyoncé dropping a surprise album and causing everyone to lose their minds!

You know what this means, right? It could mark a significant shift in trading conditions. The fact that these major market-makers are eyeing the Bitcoin market is like having the Avengers assemble to protect it. They bring expertise, liquidity, and a whole new level of superhero finesse.

But why is this such a big deal? Well, according to crypto exchange data firm Kaiko, Bitcoin’s liquidity conditions have been deteriorating. It’s like trying to swim against the current, but these big players are ready to change the game. They see the potential and are ready to dive in headfirst.

Poor liquidity conditions can be a real headache. It’s like trying to buy concert tickets when they’re about to sell out. Those smaller sell/buy orders can have a massive impact on the BTC price, turning it into a rollercoaster ride of volatility. Hang on tight!

But fear not, my fellow digital asset investors! We’re not in some gloomy market apocalypse. In fact, this Institutional Adoption tale has been a major tailwind for Bitcoin. Once those spot Bitcoin ETF applications started pouring in, it was like a torrent of good news that kept lifting the market.

Just recently, Bitcoin reached fresh highs for the year, thanks to the SEC’s decision not to appeal a legal defeat against Grayscale. It’s like getting a golden ticket to Willy Wonka’s chocolate factory. It’s a sign that the Bitcoin ETFs are inching closer to reality. The future looks brighter than ever!

So, hold on tight because we might be on the brink of a new era of institutional participation. Imagine major asset managers launching their spot Bitcoin ETFs while market-makers are jumping in to dance with the Bitcoin bulls. It’s like watching a synchronized swimming performance at the Olympic Games. Graceful, coordinated, and full of excitement!

If you’re worried about price dips, don’t be. With these big players getting in the game, any price dips will be aggressively bought into. It’s like a shopping spree where everything is on sale, and investors are clamoring to grab the best deals.

So, my dear readers, buckle up and enjoy the ride. The Bitcoin market is about to take us on a wild adventure, and I have a feeling it’s going to be one for the history books. The future looks promising, and I can’t wait to see where this digital revolution takes us next. Together, we’re unstoppable!

By the way, did you hear the latest prediction? Matrixport, the crypto financial services platform, forecasted that Bitcoin could hit a minimum of $42,000 on spot ETF approvals in the US. That’s like winning the lottery while riding a unicorn! Exciting times are ahead, my friends. Let’s embrace them with open arms and wallets ready to catch those Bitcoin gains!

We will continue to update Blocking; if you have any questions or suggestions, please contact us!