The recent approval of Bitwise's Bitcoin and Ethereum ETF by the SEC has been a pivotal development, signaling increased acceptance of digital assets and potentially attracting more institutional investors. However, the market is also navigating through a period of heightened volatility due to the expiration of over $10 billion in Bitcoin and Ethereum options. This has created an environment ripe for price swings, further compounded by geopolitical tensions from newly announced tariffs and the anticipation of U.S. labor market data. These factors are contributing to a cautious sentiment among investors, impacting Bitcoin's price movement.
The Proshares Ultrashort Bitcoin ETF (SBIT) has responded to these dynamics, rising 1.34% to $9.08 as of 5:00 AM on Friday, January 31.