The final result of Bitcoin ETF is about to be finalized. How should traders deal with the fluctuation of currency prices?

Bitcoin traders around the world are preparing for the U.S. Securities and Exchange Commission’s (SEC) final decision on bitcoin exchange-traded funds (ETFs) this week.

The agency is expected to make a decision by Friday. Specifically, the SEC is considering new rules proposed by Bats Global Exchange. These rules will help prepare for the launch of the Winklevoss brothers' Bitcoin ETF.

Meanwhile, traders are also preparing for the upcoming “big event.” According to some traders, no matter what the SEC’s final decision is, they must prepare for the ensuing volatility in the price of cryptocurrencies.

Joe Lee, co-founder of Magnr, a Bitcoin leveraged trading platform, said:

We estimate that when the ETF has a result, the currency price will be very volatile and trading activities will be more frequent.

Investor Vinny Lingham said that there is almost no evidence to speculate on the SEC's decision. However, the volatility of the currency price is certain. Therefore, market participants are actively responding to this situation.

Once the (ETF) makes a final decision, the currency price will fluctuate significantly again.

The Calm Before the Storm

Apparently, Lingham isn't the only one who holds similar views.

Charles Hayter, founder of CryptoCompare, believes trading volumes will also rise.

We believe that the volatility of currency prices will increase and the trading volume in the market will also increase.

Magnr's Lee shares the same view. Staff at their trading platform are preparing for the potential impact of ETFs, mainly dealing with problems caused by increased trading activity.

He said:

It is basically business as usual, but we have increased staff to ensure that all transactions can proceed normally. We will closely monitor the situation and ensure that our customers can trade smoothly.

Many market analysts assert that traders have already determined that the ETF will pass, and the recent price of the coin approaching $1,300 just proves this point. After the price of the coin hit a new high, many people began to warn that if the SEC's answer is no, the price of the coin is likely to plummet.

Prepare for the worst?

Many traders said they had expected the price fluctuations to occur, and some revealed they already had specific plans to deal with them.

One trader has even prepared for the worst: a sharp drop in the price of the currency after the SEC rejected the application for the listing of a Bitcoin ETF.

Tim Enneking, chairman of Crypto Asset Management, recently said that their team has developed a response plan for this situation:

If the SEC rejects the application for a Bitcoin ETF, causing the price of the currency to plummet, we will choose to short sell temporarily, and it is very likely that we will short sell all our deposited coins.

However, Jacob Eliosoff, a cryptocurrency fund manager, has a different view, saying he prefers to "wait for opportunities" when the price of a currency falls.

Every time the price of the currency drops sharply, that’s when I buy in large quantities - I don’t think the price of the currency will stay at $1,000 for a long time.