Will BlackRock’s Bitcoin ETF Options Fuel a Bitcoin Super Cycle?

Last month, the SEC gave the green light for BlackRock's Bitcoin ETF to offer options trading.

While many believe this could reduce volatility, Bitwise’s Jeff Park suggests it might actually intensify market swings, potentially igniting a Bitcoin “super cycle.”

Park, in a conversation with Anthony Pompliano, explained that incorporating non-crypto assets like gold as collateral in Bitcoin options could reshape trading strategies. This approach, known as cross-collateralization, could make margin trading more efficient, amplifying both price gains and losses depending on how the options market develops.

On October 7, spot Bitcoin ETFs saw massive inflows, with Fidelity leading the way. BlackRock’s ETF followed closely, and the introduction of options could attract even more investors in the future. Analysts are also speculating that the total Bitcoin held by ETFs could soon outpace Satoshi Nakamoto’s holdings.

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Meanwhile, a report by 10x Research noted that major market players are increasingly using leverage through Bitcoin options and other financial instruments to drive profits. With options trading hitting billions in monthly volumes this year, its role in shaping Bitcoin’s price movements is expected to grow.

Alexander Stefanov

With over 8 years of experience in the cryptocurrency and blockchain industry, Alexander is a seasoned content creator and market analyst dedicated to making digital assets more accessible and understandable. He specializes in breaking down complex crypto trends, analyzing market movements, and producing insightful content aimed at educating both newcomers and seasoned investors. Alexander has built a reputation for delivering timely and accurate analysis, while keeping a close eye on regulatory developments, emerging technologies, and macroeconomic trends that shape the future of digital finance. His work is rooted in a passion for innovation and a firm belief that widespread education is key to accelerating global crypto adoption.