The post U.S. Bitcoin ETF Options May Launch Early 2025: Analysts appeared on BitcoinEthereumNews.com.

Bloomberg Intelligence analyst James Seyffart forecasts options on US Bitcoin exchange-traded funds (ETFs) could launch as soon as early 2025. Following the SEC’s recent authorization to list options to BlackRock’s spot Bitcoin ETF, the iShares Bitcoin Trust (IBIT), this prediction. The launch, however, requires the final blessing of the Commodity Futures Trading Commission (CFTC) and the Options Clearing Corporation (OCC). The SEC has deadlines, but the CFTC and OCC haven’t. Seyffart believes the lack of urgency could delay the introduction of the option market. Consequently, the timeline is tentative until industry stakeholders await more regulatory clarity. Traders have options contracts that provide the right to buy or sell an asset at a specified price. – Advertisement – This flexibility means investors can hedge against potential loss or speculate on price moves. Many financial advisers see options as valuable tools for bracing against market volatility. Institutional Investors Likely to Embrace Bitcoin ETF Options Introducing Bitcoin ETF options could significantly change how financial advisors manage market volatility. Many advisors express concerns regarding Bitcoin’s price swings, particularly during downturns. Options provide a valuable tool for these advisors to mitigate risks while exploring the cryptocurrency market. Next, Park writes about how Bitcoin ETF options affect the broader market. He explained that a fraction of Bitcoin’s notional value will be ‘banked’ through ETF options. This new framework addresses some of Bitcoin’s capped supply challenges and opens the door to creating synthetic leverage. In addition, the presence of a regulated market, supported by the OCC, bolsters the protection against counterparty risk. This aspect reassures investors, creating a safer environment for trading Bitcoin options. As a result, the regulated market is expected to attract more institutional investors seeking exposure to Bitcoin. Bitcoin Options To Offer Innovative Investment Strategies for Traders Bitcoin ETF options could bring traders a…

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Filed under: News - @ October 11, 2024 9:24 am