The Bitcoin options market has hit a significant milestone following the U.S. Securities and Exchange Commission's approval of options trading on BlackRock's iShares Bitcoin Trust.
This move has generated excitement within the Bitcoin options trading community, who see it as a pathway to new opportunities. At the same time, some remain cautious, highlighting potential risks.
One key benefit for the Bitcoin market is the potential for greater liquidity, a factor that often appeals to institutional investors seeking assets with higher liquidity. As a result, this development could attract more long-term and institutional players to the market.
A report from CryptoQuant points to a noteworthy trend: options trading seems to be drawing in long-term investors, unlike futures trading. The report shows that over half of current BTC options have expiration dates extending beyond five months, whereas many futures contracts expire within three months.
While many in the crypto space view this as a positive step, others urge a more careful outlook. The primary concern revolves around the possibility that options trading on Bitcoin ETFs could increase short selling activity. Historically, when the supply of “paper Bitcoin” rises, the market has often faced downward pressure.
Metaplanet is aggressively expanding its Bitcoin holdings through an unconventional $5.4 billion capital raise, positioning itself as a leading BTC proxy in Asia.
BlueBird Mining Ventures, a London-listed firm traditionally focused on gold, is making headlines after announcing it will liquidate its gold reserves and begin accumulating Bitcoin as a treasury asset.
Bitcoin tumbled sharply today, shedding more than 3.5% in a matter of hours and briefly flirting with the critical $100,000 level.
Bitcoin is treading water near $105,000, but pressure is building on both sides of the trade as macro forces tighten.