DigOpp Newsletter - October 2023
Assessing The Impact of Bitcoin ETF Expectations
In case you missed it, crypto prices are up a lot.
This recent price action has been driven by expectations of a spot bitcoin ETF approval, but this rally was initially launched by a rumor which proved to be false.
Below is a chart showing the rolling 7-day change in Bitcoin’s price, with “bitcoin etf” Google search trend overlaid. Clearly, price momentum shifted to the upside as the ETF interest ticked up, as indicated by google search trends.
While this rally was initially set off by a rumor, the market clearly expects an approval.
When could that actually happen? The below table shows that the SEC has made it a habit of delaying approvals (check out this tweet). Most of the ETFs will be hitting their third deadline in January, so the market is likely expecting a decision by then.
Disclaimer
We, Digital Opportunities Group, LLC, are not providing investment or other advice. Nothing that we post on Substack should be construed as personalized investment advice or a recommendation that you buy, sell, or hold any security or other investment or that you pursue any investment style or strategy.
Case studies may be included for informational purposes only and are provided as a general overview of our general investment process. We have compiled our research in good faith and use reasonable efforts to include accurate and up-to-date information. In no event should we be responsible or liable for the correctness of any such research or for any damage or lost opportunities resulting from use of our data.
We are not responsible for the content of any third-party websites and we do not endorse the products, services, or investment recommendations described or offered in third-party social media posts and websites.
Nothing we post on Substack should be construed as, and may not be used in connection with, an offer to sell, or a solicitation of an offer to buy or hold, an interest in any security or investment product.