BlackRock Spot Bitcoin ETF Approved by SEC for Options Trading!

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📅 Today

🔍️ Market Outlook For The Week

• Overall Bias - Cautious 🙏 

• Post FOMC, BTC is re-testing the bull-market support band at $62,700-$64,000, trying to break this major resistance.

• This is a crucial price level. If BTC gets rejected here, further downside can be expected.

• Historically, Q4 has been the best performing quarter for BTC, so we can expect some bullish momentum due to seasonality.

• For the bulls, a breakout above $67,400 will take BTC to new all-time highs

• It is wise to not take any new leveraged positions till BTC closes above $67,400, and just DCA in spot instead.

MicroStrategy Acquires Additional BTC for $458 mil ❗️ 

Yesterday, MicroStrategy announced the completion of its $1 billion convertible senior notes offering, aimed at purchasing more Bitcoin.

Shortly after, CEO Michael Saylor revealed the firm had acquired an additional $458 million worth of Bitcoin, at an average price of $61,750 per BTC.

This latest acquisition brings MicroStrategy’s total Bitcoin holdings to 252,220 BTC, with an average purchase price of $39,266 per coin. As a result, the company’s unrealized gains now exceed $5.9 billion.

In August 2024, Saylor also disclosed his personal Bitcoin holdings, valued at over $1 billion.

SEC Approves Options Trading For BTC ETF’s ❗️ 

The SEC has approved Nasdaq’s request to list options for the iShares Bitcoin Trust ETF (IBIT), which is BlackRock’s spot Bitcoin ETF.

This approval allows investors to trade options on the IBIT ETF, giving them more ways to manage risk and invest in Bitcoin.

What’s unique is that these options are physically settled, meaning you’ll get actual Bitcoin when the contracts are exercised.

This is the first time the SEC has allowed options trading around a spot Bitcoin ETF, opening up more opportunities for both institutional and retail investors to invest in Bitcoin.

Many see this as a big win for the crypto market, pushing Bitcoin ETFs and related products further into mainstream finance.

📕 Educational

The above image shows the returns of various asset classes immediately after major black swan events.

As seen evidently, BTC has been the quickest to recover from all these events, posting higher gains than the other asset classes too, indicating it’s strong demand and potential to be a hedge against market collapses in the future too.

Source : BlackRock

📊 Stat of the day

📈 Chart of the day

Rationale & Confluences :

• Cup and handle breakout attempt

• A 4H candle close above $2,600 can be a good entry

• Continuation towards $2,800 is likely if the breakout is successful

• Look out for volumes on the breakout for additional confirmation

• Look for BTC dominance falling for further confirmation

• Low or no leverage on this trade

• Source : Cointraction

🤣 Meme of the day

That concludes our update for today!

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Disclaimer : None of the content shared in the newsletter is financial advise. Always do your own research and analysis before investing.