Bitcoin ETF Launches Spark Growth in Options Market, Dampening Price Swings
• Spot Bitcoin ETF launches have increased trading volumes, especially around the ETF price fix time which provides a consistent reference point. This could reduce volatility.
• Allowing options trading on spot Bitcoin ETFs could significantly expand the Bitcoin options market beyond just offshore exchanges and institutional platforms like CME.
• A more developed Bitcoin options market enables more investment strategies and could further reduce volatility.
• Spot Bitcoin ETF trading volumes are already around 20% of daily Bitcoin spot market volume just 2 weeks after launch.
• As crypto ETF innovation continues, trading activity should dampen Bitcoin price volatility and contribute to the maturation of crypto as an asset class.