Opinion: Bitcoin ETF may push Bitcoin to a new all-time high

summary

• Bitcoin’s stability and upcoming ETF decisions, especially ARK 21Shares’ filing, could serve as catalysts for all-time highs in Bitcoin prices.

• Market experts have highlighted the growing acceptance and potential of Bitcoin, as evidenced by major companies such as BlackRock seeking ETF approval.

• Bitcoin remains in tight consolidation around the $29,000 mark, but an upcoming decision could disrupt the current calm.

While Bitcoin (BTC) continues to hover around the $29,000 mark, the market is keenly watching for the much-anticipated catalyst, the exchange-traded fund (ETF), which could propel it to unprecedented highs. With 30-day volatility falling to new lows and volumes seemingly on hiatus, the catalyst we have been waiting for could very well be around the corner.

Bitcoin's continued performance has created a façade of stability, causing options implied volatility indicators to fall. At the same time, the stable market has stimulated an upward trend in perpetual open interest. Against this backdrop, leverage has been rising, suggesting that volatility may surge.

Bitcoin Catalyst

“I think if the SEC is going to approve a bitcoin ETF, it’s going to approve multiple bitcoin ETFs at the same time,” said Catherine Wood, CEO of ARK Invest. This seems imminent with the upcoming ETF decision.

The U.S. Securities and Exchange Commission (SEC) is about to make a decision on the ARK 21Shares ETF application. Previous events have demonstrated the huge impact of ETF momentum on the market, especially during the rally in June after BlackRock filed an ETF application.

At this point, theories on whether the SEC will approve, reject, or simply postpone its decision are all just speculation. ARK’s application will likely impact market volatility. However, current indicators point to a delay as the SEC’s focus remains divided and its eyes are also on the Grayscale lawsuit.

Historically, the SEC has tended to use the full span of its 240-day decision window. The ruling on ARK 21Shares' filing is expected to be released between August 11 and August 13, and there could be a surge in market activity and volatility.

And ARK isn’t the only player in this game. There are more deadlines to come for future ETFs, with Bitwise’s decision coming on September 1st and the subsequent decision on September 2nd. The market is already in a state of high anticipation and may see increased trading volume and price volatility as a result of these upcoming rulings.