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BlackRock's Spot Bitcoin ETF To Open For Options Trading: Here's Why It Could Be A Big Deal For Bitcoin
来源: Buzz FX / 19 11月 2024 06:05:14 America/Chicago
Options trading for spot Bitcoin (CRYPTO: BTC) exchange-traded funds are all set to launch on Wall Street on Tuesday, marking a new era of the leading cryptocurrency's integration into traditional finance.
What happened: Nasdaq head of ETP listings Alison Hennessy told Bloomberg they plan to list options for iShares Bitcoin Trust ETF (NASDAQ:IBIT) "as early as" Tuesday.
The approved options would be listed on the Nasdaq under the ticker symbol "IBIT," paving the way for institutional investors and traders to hedge their exposure to Bitcoin more efficiently.
But why is it a big deal?
In a video posted on X Monday and reshared by Bloomberg's senior ETF analyst Eric Balchunas, analyst and head of growth at Bitcoin custody firm Theya, Joe Consorti, said that the launch will open the "floodgates" for Bitcoin's next evolution in financial markets.
Consorti stated the importance of options trading, especially for institutional investors. He explained that in sectors like equities and commodities, derivatives are 10 to 20 times the size of the underlying market cap.
On the other hand, Bitcoin's derivatives market was much lower, with its total Open interest, or OI, being a fraction of its spot market capitalization.
See Also: Bitfinex Bitcoin Laundering Case Lands ‘Crocodile Of Wall Street’ In Jail
"So Bitcoins are vastly underdeveloped, and this limits the market majority because there is a huge institutional demand for these vehicles from a hedging perspective and an allocation perspective," Consorti said.
With the debut of options trading, the analyst expected Bitcoin's derivatives market to balloon into something "much, much larger."
Why It Matters: Retail investors, who constitute nearly 44% of the listed equities options market, had trouble accessing Bitcoin ETF options due to the OTC (over-the-counter) nature of trading on platforms like Deribit.
However, all this changes with IBIT options, as investors previously excluded would be able to join the Bitcoin derivatives market, giving a boost to the investor base and demand.
"A robust derivatives ecosystem reduces volatility, improves price discovery, and allows institutional capital to engage with Bitcoin at scale," Consorti emphasized.
The IBIT spot ETF was the biggest Bitcoin-related fund, according to SoSo Value, with assets worth more than $43 billion as of this writing.
Price Action: At the time of writing, Bitcoin was trading at $91,727.36, up 0.08% in the last 24 hours, according to data from Benzinga Pro.
What's Next: The launch coincides with Benzinga’s Future of Digital Assets event on Nov. 19, where the focus will be on Bitcoin’s role in institutional portfolios, regulatory clarity, and the evolving crypto market landscape.
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Photo courtesy: Shutterstock
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