Options on spot Bitcoin exchange-traded funds (ETFs) are making their debut today, marking a new era for crypto investors. As Bloomberg reports, Nasdaq will list options on BlackRock’s iShares Bitcoin Trust (IBIT), a $43 billion fund. This move, confirmed by a Nasdaq spokesperson to Barron’s, introduces a new way for investors to hedge their bets or speculate on Bitcoin’s price movements.
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Bitcoin ETFs Surge in Popularity
Bitcoin ETFs have been on fire since their approval by the Securities and Exchange Commission earlier this year. According to The Block, these funds have already surpassed $500 billion in trading volume—a testament to their demand. Sylvia Jablonski, CEO and CIO of Defiance ETF, pointed out that options trading adds an extra layer of flexibility, enabling investors to manage risk, sell covered calls, or use credit spreads.
What This Means for Bitcoin
The timing couldn’t be better, with Bitcoin prices recently crossing $92,000 during a postelection rally. Jablonski also noted that when options become available, both the options and the underlying asset often experience a surge in trading volume. This could further boost Bitcoin’s market activity, potentially driving its price higher.
At the time of writing, Bitcoin is sitting at $93,714.54.
