The stock exchanges open their doors today, but with reduced hours. Bitcoin started the day higher with a price of $96,700. Bitcoin spot ETFs are back in action after taking a break for one of the biggest US holidays. Thanksgiving Day is a national holiday where most companies, including the stock market, close their doors so people can celebrate with their families. Now, in an environment of calmer markets, the “ETF impact” could raise the price of bitcoin further (provided there is enough demand), while investors continue to look for new ways to enter the market. The day before the break, these funds managed to attract inflows of 103 million dollars, a figure that stands out after the losses suffered in the first days of the week, when investors withdrew 435 million and 122 million dollars, respectively, as reported CryptoNews. Since their launch in January this year, bitcoin spot ETFs have performed positively, accumulating more than $104 billion in assets under management. Among them, the ETF managed by BlackRock, the iShares Bitcoin Trust (IBIT), has emerged as the most successful. With a total of 495,444 BTC under management, This fund has been one of the main drivers of the increase in demand for bitcoina trend that could intensify as more capital flows into these financial instruments.
Assets under management of bitcoin ETFs in the US. Source: Hodl15capital.
Bitcoin on the rise
In the midst of this return of ETFs, The bitcoin market has started with optimism. Today, the price of bitcoin is at $97,000, marking an increase of 1.83% in the last 24 hoursas seen in the following TradingView chart.
BTC price. Source: TradingView. This rise follows a previous fall, where the crypto asset had touched $94,700. If the impact of ETFs is positive, the price of bitcoin is likely to be boosted further as spot ETF management companies must purchase and hold bitcoin in their treasuries to back the issued shares. This process of acquiring bitcoin for funds creates direct demand in the market, which can result in an increase in price. As ETF managers buy more bitcoin, the amount available on the open market decreases, which tends to put upward pressure on prices.
Bitcoin options also play a role
Another factor driving the price of bitcoin is BTC options. Options contracts worth $9.4 billion expired today corresponding to 98,000 contracts, according to data from Greeks.live, a portal specialized in analysis of financial options.
Bitcoin options expired today. Source: Greeks.live. An option contract gives the buyer the right, but not the obligation, to buy or sell bitcoin at a predetermined price on a specific date. “With more than 20% of positions expiring this week and 40% of options expiring at the end of the year, the market is experiencing additional pressure that could increase implied volatility,” warns Greeks.live. The general feeling in the markets is optimism, but the options market remains somewhat cautious. Institutional investors, in particular, fear a repeat of the 2020 experience, when the bitcoin market experienced huge volatility during the year-end holidayshe assures. Despite the enthusiasm for ETFs, it must be considered that today, the market faces an atypical context. The day after Thanksgiving in the United States is known as Black Friday, an event of great discounts and sales, especially in the retail and e-commerce sector. However, it is important to highlight that stock exchanges will operate with reduced hours today, closing at 1 p.m.. This measure allows employees in the financial sector to enjoy a long weekend.