Journalist
Published:
- Options trading on spot Bitcoin ETFs could attract more institutional interest.
- Bitcoin ETFs are seeing record inflows, but volatility and profit-taking are leading to occasional outflows.
The introduction of options trading for Bitcoin (BTC) spot exchange-traded funds (ETFs), e.g.scheduled to launch on November 19, is seen as a major step toward attracting greater institutional interest in King Coin.
For those who don’t know, options, a type of derivative, give investors the flexibility to buy or sell the underlying asset, like Blackock’s IBIT Bitcoin ETF, at a predetermined price within a time frame. specified time.
This innovative trading tool not only allows leveraged betting on the price of Bitcoin, but also offers a strategy for hedging other positions.
Leaders speak out
Making the same point, Alison Hennessy, head of ETP listings at Nasdaq, noted in a recent conversation with Bloomberg TV:
“Our intention at Nasdaq is to list and trade these options tomorrow. I think bringing these IBIT-listed options to market will be very interesting for investors, because that’s really what they’ve been telling us.
Currently, the US market offers eleven spot Bitcoin ETFs, but only IBIT is listed on Nasdaq, making it the only ETF eligible for options trading.
The SEC approved options for IBIT in September, along with rule changes for other Bitcoin ETFs listed by the New York Stock Exchange (NYSE) and Cboe Global Markets.
As options trading gains traction, James Seyffart, ETF analyst at Bloomberg Intelligence, suggests that options for other Bitcoin ETFs could soon follow.
This could further increase the range of derivatives trading opportunities in the cryptocurrency sector.
“It’s likely that these things will start to be negotiated this week, potentially within a day or two… As far as we can tell, all the regulatory and bureaucratic hurdles have been cleared.” It’s just a matter of crossing the t’s and dotting the i’s. »
Spot the Bitcoin ETF Success Record
Spot Bitcoin exchange-traded funds (ETFs) maintained strong momentum, seeing $1.67 billion in net inflows between November 11 and 15, marking six consecutive weeks of positive growth according to SoSoValue.
BlackRock’s iShares Bitcoin Trust (IBIT) significantly outperformed, accumulating $29.3 billion in historic inflows.
In comparison, Grayscale’s Bitcoin Trust ETF has seen $20.3 billion in outflows since the advent of spot BTC ETFs in January.
The positive trend extends beyond Bitcoin, as spot Ether (ETH) ETFs also saw an increase, with $515 million in weekly inflows, bringing their total net inflows over the past three weeks to 682 million of dollars.
Is Bitcoin the main driver of success?
In conclusion, the recent surge in cryptocurrency exchange-traded products, driven by record highs in Bitcoin, reflects growing investor confidence in the digital asset market.
However, the subsequent capital outflows highlight the volatility that accompanies such rebounds, with investors taking profits after large price increases.
As the market continues to evolve, the balance between inflows and outflows will be crucial in determining the sustainability of this uptrend, with Bitcoin and other cryptocurrencies remaining at the forefront of investor interest.
