The post Bitcoin ETF Options Can Trigger Super Cycle, Bitwise Executive Explains appeared on BitcoinEthereumNews.com.

Last month, the U.S. Securities and Exchange Commission (SEC) gave the nod for trading options on BlackRock Bitcoin ETF. However, in his recent interview, Bitwise Head of Alpha Strategies Jeff Spark said that options on the BTC ETFs could trigger heightened volatility and thus a Bitcoin super cycle. Bitcoin ETF Options Can Bring Heightened Volatility The launch of spot Bitcoin ETFs has been highly successful as the instrument netter nearly $60 billion in AUM just within the first nine months of launch. This puts the BTC ETFs among the most successful ETF launches on Wall Street. The approval of the options for the spot Bitcoin ETFs would bring volatility down in what many people believed. However, Jeff Sparks bursts the common notion stating that it could rather lead to an instance super cycle for Bitcoin moving ahead. During his recent interview with Anthony Pompliano, Jeff Spark highlighted the potential of cross-collateralization in the crypto space. The Bitwise executive emphasized the significance of incorporating non-correlated assets, such as GLD ETFs or gold assets, into collateral pools for Bitcoin options. This cross-collateralization could create a more efficient margin framework that allows assets outside of crypto to be used as collateral in regulated environments. As per the Bitwise executive, this shift would unlock new opportunities for margin systems. He also addressed the directional impact of Bitcoin options trading, suggesting that these instruments could amplify market movements, both upward and downward. Spark added that the long-term effect will depend on how the options market evolves. Here is the INSANE Bitcoin Options Super Cycle Theory. Bitwise’s Jeff Park (@dgt10011) explains why the new ETF options could lead to significant volatility. We recorded this conversation because I believed the opposite. Watch to see if I change my mind 🙂 0:00 – Intro1:19… pic.twitter.com/tMBD3zDWWm — Anthony Pompliano…

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Filed under: News - @ October 8, 2024 6:16 am