15h00 ▪
4
min reading ▪ by
Eddy S.
The launch of Bitcoin spot options in the United States marks a crucial milestone for the crypto market. Scheduled for November 19, 2024, this event could transform market dynamics and attract a new wave of institutional and individual investors.
Bitcoin spot options launched in the United States!
Bitcoin spot options are financial derivatives that allow investors to buy or sell shares of Bitcoin ETFs (exchange-traded funds) at predetermined prices. Unlike Bitcoin futures, which are widely used to speculate on the future price of the asset, spot options allow for greater flexibility.
They offer traders the ability to buy or sell bitcoin at a predefined price before a specific expiration date, without the obligation to complete the transaction. This feature is particularly attractive to investors looking to protect against the extreme volatility of the crypto market.
This launch is therefore particularly significant because it introduces a new layer of liquidity and sophistication into the crypto market, which is still largely underdeveloped in terms of derivatives products.
An innovation expected this November 19, 2024
The launch of these options is supported by the Options Clearing Corporation (OCC), which is preparing to introduce these investment vehicles, starting with the BlackRock iShares Bitcoin Trust (IBIT). Alison Hennessy, head of ETP listings at Nasdaq, said the exchange plans to list and trade these options as early as November 19.
Joe Consorti, head of growth at Theya, said that “the floodgates for Bitcoin’s next evolution in the financial markets are about to open.” He emphasizes that these options are fundamental to capital markets because they provide risk management, price discovery and liquidity tools, particularly important for institutional and retail investors.
According to Ryan Lee, chief analyst at Bitget,
The introduction of options also contributes to price stability. Options act as a risk management tool, allowing investors to hedge against the volatility inherent in the price of bitcoin. By providing the ability to buy and sell options, the market can experience greater stability as participants can better manage their risk exposure without relying solely on directly buying or selling bitcoins.
In short, the launch of Bitcoin spot options in the United States represents a major breakthrough that could redefine the crypto landscape. By bringing a new dimension of liquidity and attracting a wide range of investors, this event could well be the catalyst for the next big phase of growth for BTC and the crypto market in general.
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Eddy S.
The world is evolving and adaptation is the best weapon to survive in this undulating universe. Basically a crypto community manager, I am interested in everything directly or indirectly related to blockchain and its derivatives. In order to share my experience and raise awareness of a field that fascinates me, there is nothing better than writing articles that are informative and relaxed at the same time.
