Blackrock’s market-led spot Bitcoin exchange funds could get bigger after the SEC added status restrictions on many bitcoin funds.
SEC increased the allowable amount on Tuesday Options contract From 25,000 to 250,000 “options for all ETFs” include the Ishares Bitcoin Trust ETF (IBIT), but not the NYDIG global research leader Greg Cipolaro, Greg Cipolaro, Greg Cipolaro, Wise Origin Butcoin Fund (FBTC), not the Fidelity Wise Origin. explain In Friday’s report.
“This change is likely to expand the terrible lead that IBIT has surpassed other players, and it makes FBTC the second largest option player,” Cipolaro said.
IBIT manages assets of $85.5 billion, four times that of FBTC, the second largest Bitcoin (BTC) ETF with assets of $21.35 billion. according to Go to coinglass.
Option limits increase to smooth fluctuations
Cipolaro said the SEC’s decision to increase the option position limit on Bitcoin ETFs could curb Bitcoin volatility and lead to higher demand.
“This change has enabled more option strategies to implement more option strategies,” he said, and traders are selling there. Call Options While owning the underlying asset, the asset limits downside risks and limits the amount obtained from the transaction.
Cipolaro added that the less volatility makes Bitcoin “attractive on a risk-equal basis and potentially attract new capital”, seeking exposure to equilibrium risk from institutional portfolios.
“The feedback loop that leads to a decrease in volatility that increases on-site purchases may be a strong driver of ongoing demand,” he said.
SEC approval affects the market
SEC keeps moving forward Various regulatory approvals related to ETFs On Tuesday, most notably approved the physical creation and redemption of crypto ETFs, thus allowing shares to be exchanged for underlying cryptocurrencies rather than cash.
Related: Spot Bitcoin ETF sees the second largest outflow, Ethereum ETF ends 20-day winning streak
Cipolaro said it was a “critical feature” that ETF issuers wanted before their products were approved, and now it will “hare a significant impact on market structure and investor access.”
He added that Authorized Participants (APS) – financial institutions that manage the creation and redemption of ETF stocks – have no encryption capabilities “may not be able to take advantage of arbitrage activities and provide competitive pricing.”
“Today there are only two APs, Jane Street and Virtu, and there are corresponding crypto entities that can trade both parties to trade, and we expect brokers-dealers (APs) to have no encryption capabilities available or partners to keep up,” Cipolaro said.
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