The Potential Approval of a Bitcoin ETF Spurs Activity in Options Markets
The anticipation of a potential approval for a spot bitcoin exchange-traded fund (ETF) has generated significant enthusiasm in the crypto market. This has led to a notable increase in activity within the options markets, with open interest nearing an all-time high on Deribit’s market, according to Luuk Strijers, the firm’s COO.
Bitcoin Price Surge and BlackRock’s Spot Bitcoin ETF
Over the past month, Bitcoin’s price has surged by more than 32% as traders grow excited about the impending launch of a spot ETF. The recent news about BlackRock’s spot bitcoin ETF being listed on the DTCC’s website has further fueled gains in the crypto market.
Increasing Bullishness Among Professional Traders
Professional traders on derivatives venues have become increasingly bullish, with new buyers entering the market and taking advantage of call convexity by purchasing calls. While Deribit options activity is not the primary driver of this market trend, the overall sentiment surrounding ETFs seems to be influencing the surge in prices, according to Strijers.
BTC and Ether Options Open Interest
The open interest for BTC options currently stands at around $12.4 billion, while ether options open interest is at $6.5 billion. The total open interest across Deribit’s product suite is $21 billion.
CME Group’s Milestone in Bitcoin Futures Market
In the futures market, the recent rally has been beneficial for CME Group. According to K33 Research, the U.S. exchange giant achieved a milestone as open interest in bitcoin futures exceeded 100,000 bitcoins for the first time. Additionally, CME Group’s market share has surged to a new record of 25%, coming close to Binance’s 29% in the futures market.
Hot Take: The Potential Impact of a Bitcoin ETF Approval
The potential approval of a bitcoin ETF has sparked significant excitement and activity within the crypto market. Traders are anticipating positive news regarding the launch of a spot ETF, which has contributed to the recent surge in Bitcoin’s price. Professional traders are increasingly bullish, with new buyers entering the market and taking advantage of call options. The open interest in BTC and ether options is reaching all-time highs, indicating growing interest in these markets. If approved, a bitcoin ETF could have a substantial impact on the crypto industry, potentially attracting more institutional investors and driving further price growth.
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