Bitwise CEO Hunter Horsley revealed they expect options trading for their Bitcoin ETF (BITB) to begin on November 20. The move comes after BlackRock recently launched options trading for its iShares Bitcoin Trust (IBIT).
This is a huge development for Bitcoin ETFs. It gives investors more options for managing their Bitcoin exposure. Options allow you to buy or sell assets at predetermined prices within certain timeframes.
Industry experts foresee higher market liquidity and greater financial connectivity. However, there are issues about position constraints. Jeff Park of Bitwise pointed out that IBIT's contract cap of 25,000 appears to be low compared to its potential. Despite restrictions, the regulatory landscape has evolved. The CFTC has delegated control of ETF options to the SEC, recognizing them as securities.
Bitcoin ETFs continue to attract significant investment attention. According to the most recent figures, net inflows totaled $254M on November 18. BlackRock's IBIT took the lead with $89.3M, followed by Fidelity's FBTC with $60M.
Bitwise's introduction of options trading shows the increasing demand for sophisticated Bitcoin investment vehicles. As the market grows, it opens up new options for regular and institutional investors alike.
