Bitcoin ETF Options Debut in the U.S.: Is a New All-Time High on the Horizon?

The first day of trading with Bitcoin ETF options has ended in the USA. Their approval was ultimately completed very quickly. Bitcoin itself benefited from the development with an all-time high of $94,000.

In September, there were initial signals that Bitcoin ETF options were being considered eligible by US authorities

After the “green light” from the SEC and Donald Trump’s election victory, the matter suddenly gained momentum – yesterday, November 20th, was the first day of trading for Bitcoin options, in this case based on BlackRock’s BTC ETF, IBIT. Bitcoin reacted promptly with a new all-time high, which is now at $94,000.

Bloomberg analyst Eric Balchunas summed up the debut of Bitcoin ETF options on X : $1.9 billion in volume is “unheard of” for day one and indicates a record price. This Wednesday, more Bitcoin ETF options will make their debut, including those from GrayScale and Bitwise. With such options, traders can bet on price developments of BTC ETFs. Calls allow them to buy Bitcoin ETFs at a set date and price, while puts stand for selling.

According to Bloomberg expert James Seyffart, on the first day of trading for Bitcoin ETF options, a good 80 percent of the 354,000 positions were calls. This means that the market expects Bitcoin prices to continue to rise. Balchunas has identified December 20th as the date on which a particularly large number of Bitcoin ETF options calls will be due, and they tend to expect the BTC price to double by then. One thing is clear: the options are causing additional capital to flow into Bitcoin ETFs, partly to hedge positions, partly speculatively.

ETF experts like Nate Geraci are already looking a step further into the future and believe it is only a matter of time before more financial instruments such as “Covered Call BTC ETFs”, “Buffer Bitcoin ETFs” and so on come onto the market. Considering that Bitcoin ETFs only received their approval from the SEC in January after years of back and forth, BTC is now making great strides towards becoming an asset class in a regulated environment in which professional traders have a whole range of financial instruments at their disposal.

Conclusion: Bitcoin establishes itself through ETFs and options on US stock exchanges

When Donald Trump announced his election victory on November 6th, Bitcoin reached a new all-time high of $75,000. Since then, new record prices for BTC have been recorded almost daily, and the magic mark of $100,000 is within reach.

In this environment, Bitcoin ETFs are proving to be trend indicators, and the new BTC ETF options will find their place. 2024 will go down in Bitcoin history as the year in which BTC was fully recognized as an asset class in its own right in the USA and received additional support from Donald Trump.

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(Featured image by Shutter_Speed via Pixabay)

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