Bitcoin options ETFs now means massive cashflow according to Bitwise’s head of strategies Jeff Park, following the SEC’s’ new approvals.
The U.S. Securities and Exchange Commission (SEC) has approved Bitcoin (BTC) options exchange-traded funds (ETFs) for two prominent U.S. exchanges.
In separate announcements, the SEC confirmed its approval of proposals from the New York Stock Exchange (NYSE) and the Chicago Board Options Exchange (CBOE) to list options contracts for Bitcoin-based ETFs.
The decision comes after the SEC recently approved a rule change from Nasdaq to allow options trading on the iShares Bitcoin Trust (IBIT), which has shown positive outcomes.
The SEC noted that this is a competitive filing, referencing the Nasdaq’s approval as a key factor.
The agency believes that, similar to the recently approved options on IBIT, options on Bitcoin Funds would facilitate hedging, enhance liquidity, improve price efficiency, and reduce volatility for the underlying assets.
Additionally, allowing these options to be listed would contribute to greater transparency and efficiency in the markets for these and related products.
In September, Jeff Park, head of alpha strategies at Bitwise, suggested that the market could become “wild” following the SEC’s approval of Nasdaq’s proposal to list BlackRock’s IBIT options.
He remarked that since Bitcoin cannot be diluted by creating more units, the potential for options ETFs could be “unbelievably fantastic.”
Park further explained, “This marks the first time the financial sector will see regulated leverage on a perpetual commodity that is genuinely supply-constrained.
It’s likely to get chaotic.
In such situations, regulated markets might pause.
However, the unique aspect of Bitcoin is the existence of a parallel, decentralized market that cannot be shut down, unlike what happened with GameStop.
This will likely intensify the situation significantly.
It’s going to be incredibly exciting.”
With this new Bitcoin ETF options approval, the market can expect additional cashflow into the crypto asset.
The news is bullish for the industry.
Bitcoin (BTC) is currently trading at $68,920.10 at the time of this publication.
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Also Read: Bitcoin Is Now Preparing To Leave Gold And NASDAQ Far Behind
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