Bitcoin Options Market Surpasses Futures in Growth, Showing Sophisticated Trading and Strategic Possibilities
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The bitcoin options market has overtaken the BTC futures market in open interest, indicating market maturity and influx of sophisticated traders.
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Options allow strategic positioning, hedging, and benefiting from volatility unlike futures and spot markets.
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Options usage for hedging and yield collection was popular earlier in 2022. Now traders buy options to benefit from renewed volatility.
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Options are considered less risky than futures since they do not involve the same degree of leverage and loss exposure.
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The growth of options highlights their usefulness for more than just directional speculation available in spot and futures.