Today will be an important day for Bitcoin. Options Clearing Corporation (OCC) announced that it is preparing to launch spot Bitcoin ETF options, starting with the BlackRock iShares Bitcoin Trust ( IBIT ).
So Why Is This Important?
Joe Consorti, CEO of Bitcoin custodian Theya, said the launch of spot Bitcoin ETF options was a big deal.
Because Consorti said that options will attract extra liquidity, which will attract a new wave of institutional and individual investors, and many investors will turn to Bitcoin.
“ETF options will begin trading in the US on November 19th, opening the door to Bitcoin’s next evolution in financial markets.
“The launch of spot ETF options, particularly for BlackRock’s ETF product IBIT, signals the beginning of a new era in terms of Bitcoin price, volatility, and institutional adoption.”
Stating that options are the foundation of capital markets, Consorti said that options provide much more liquidity, price discovery and risk management for institutional investors who largely drive the market.
Making a comparison between derivative markets, Consorti said, “It is very important to have a derivative market because in traditional markets, derivatives are 10 to 20 times the size of the underlying market value, but derivatives in Bitcoin are less than 1% of the $ 1.8 trillion spot market value.” He pointed out that options are very important for BTC.
Stating that options that will start in the US will attract a lot of interest and demand from institutional investors, Consorti said that most Bitcoin derivatives are traded on offshore or OTC platforms such as Deribit, but US investors are left out of derivatives exchanges.
“Listing options on Bitcoin ETFs brings US investors into the game, bringing BTC into the world’s largest capital market and unlocking unprecedented opportunities such as massive liquidity.”
Stating that the Bitcoin derivatives market will grow along with options, Consorti said that the derivatives market is much larger than the spot market.
As is known, Nasdaq head of ETP listings Alison Hennessy said that the exchange plans to list and start trading spot BTC ETF options as early as November 19.
*This is not investment advice.