{"id":15041,"date":"2024-09-23T12:09:51","date_gmt":"2024-09-23T12:09:51","guid":{"rendered":"https:\/\/www.cryptoheretostay.com\/?p=15041"},"modified":"2024-09-23T12:10:21","modified_gmt":"2024-09-23T12:10:21","slug":"blackrock-bitcoin-etf-options-approved-by-sec-creates-hopes-of-gamma-squeeze","status":"publish","type":"post","link":"https:\/\/cryptoheretostay.com\/?p=15041","title":{"rendered":"BlackRock Bitcoin ETF options approved by SEC, creates hopes of gamma squeeze"},"content":{"rendered":"<script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"crypto\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script>\n<p>The US Securities and Exchange Commission (SEC) has approved Nasdaq to list and trade options on BlackRock&#8217;s spot Bitcoin exchange-traded fund (ETF) product, iShares Bitcoin Trust (IBIT).<\/p>\n<p>Options trading enables investors to buy or sell assets at a pre-determined price, helping them speculate on price movements. So, this decision marks another step toward broadening the range of Bitcoin-linked derivatives, offering investors more tools to manage exposure to the flagship crypto asset.<\/p>\n<p>However, the product still requires the approval of the Options Clearing Corporation (OCC) and the Commodity Futures Trading Commission (CFTC).<\/p>\n<h2>More Bitcoin ETF-based products<\/h2>\n<p>Bloomberg ETF analyst Eric Balchunas noted that other major firms might soon receive approval for their own Bitcoin ETF options.<\/p>\n<p>He said:<\/p>\n<p>&#8220;Huge win for the the bitcoin ETFs (as it will attract more liquidity which will in turn attract more big fish).&#8221;<\/p>\n<p>Nate Geraci, President of ETF Store, suggested that approving options for spot Bitcoin ETFs could lead to the development of more Bitcoin ETF-based products.<\/p>\n<p>Geraci stated:<\/p>\n<p>&#8220;Expect a flurry of various ETF filings like Bitcoin buffer or defined outcome ETFs, Bitcoin premium income or yield max (covered call) ETFs, Bitcoin tail risk ETFs, Bitcoin convexity ETFs.&#8221;<\/p>\n<h2>&#8216;Gamma squeeze possibility&#8217;<\/h2>\n<p>Jeff Park, head of alpha strategies and portfolio manager at asset management firm Bitwise, pointed out that Bitcoin options will likely generate strong institutional demand, setting the stage for a gamma squeeze.<\/p>\n<p>A gamma squeeze occurs when stock prices rise rapidly because market makers buy more stock to cover their options positions, driven by high demand for call options.<\/p>\n<p>In Bitcoin&#8217;s case, Park explained that the Bitcoin ETF options market introduces regulated leverage on a supply-constrained asset. He added:<\/p>\n<p>&#8220;With Bitcoin options, investors can now make duration-based portfolio allocation bets, especially for long-term horizons. There&#8217;s a good chance that owning long-dated OTM calls as premium spend will give investors more bang for their buck than a fully-collateralized position that could drop by 80% over the same period.&#8221;<\/p>\n<p>The post BlackRock Bitcoin ETF options approved by SEC, creates hopes of gamma squeeze appeared first on CryptoSlate.<\/p>\n<p><script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"bitcoin\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n<br \/><a href=\"https:\/\/cryptoslate.com\/blackrock-bitcoin-etf-options-sec-approval-confirmed-setting-up-hope-of-gamma-squeeze\/\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The US Securities and Exchange Commission (SEC) has approved Nasdaq to list and trade options on BlackRock&#8217;s spot Bitcoin exchange-traded fund (ETF) product, iShares Bitcoin Trust (IBIT). Options trading enables investors to buy or sell assets at a pre-determined price, helping them speculate on price movements. So, this decision marks another step toward broadening the [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":15042,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_wp_rev_ctl_limit":""},"categories":[3],"tags":[],"class_list":["post-15041","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ethereum-news"],"_links":{"self":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/15041","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=15041"}],"version-history":[{"count":1,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/15041\/revisions"}],"predecessor-version":[{"id":15043,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/15041\/revisions\/15043"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/media\/15042"}],"wp:attachment":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=15041"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=15041"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=15041"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}