Market Dynamics of Bitcoin ETF Options Trading

On Tuesday, options on BlackRock’s bitcoin ETF, IBIT, launched, seeing $1.9 billion worth of those options changing hands on the first day.

The launch of these options could mark a turning point for crypto markets, with implications for liquidity, volatility, and institutional adoption. 

Eric Balchunas, senior ETF analyst at Bloomberg, explains why these options are so significant, who they’re designed for, and how they could impact the broader ecosystem.

Plus, he offers some cautionary advice to bitcoiners, gives insight into whether spot ether etf options are on their way, and discusses the odds of SOL ETFs launching.

Show highlights:

• What bitcoin ETF options are and why they are relevant for traders and investors
• Whether options will reduce the volatility of BTC
• Why Eric offers caution after seeing bitcoin surging so much recently
• What Eric thinks about the possibility for Bitcoin ETF options to spark a “gamma squeeze” 
• What type of investors Eric thinks typically trade options
• Whether regulators treat Bitcoin differently and with prejudice 
• What he would like to see from a new SEC
• Why IBIT options will likely dominate the market, according to Eric
• Why Eric was surprised that options on futures ETFs was so low compared to the spot ETFs
• How the launch of options will affect Deribit, the main exchange for trading options
• Whether options for ether spot ETFs are coming as well
• His thoughts on the news that spot SOL ETFs may be moving to the next phase

Visit our website for breaking news, analysis, op-eds, articles to learn about crypto, and much more: unchainedcrypto.com

Thank you to our sponsors!

• Polkadot
• Mantle’s FBTC

Guest

• Eric Balchunas, Senior ETF Analyst at Bloomberg
• Previous appearances on Unchained:
• Why Spot Ether ETFs Are Now Likely to Be Approved on Thursday
• How, in 7 Weeks, Bitcoin ETFs Reached Inflows That Took Gold ETFs 3 Years
• Why Spot Bitcoin ETFs Are Likely to Finally Start Trading on Thursday
• Will a Spot Bitcoin ETF Finally Get Approved?

Links

• Previous coverage of Unchained on bitcoin ETFs options:
• Why Bitcoin ETF Options Could Unlock Massive Amounts of Capital for Crypto
• Unchained: Bitcoin Hits New All Time High as IBIT’s First-Day Volume Nears $1.9 Billion 

Timestamps:

• 00:00 Intro
• 01:15 Why Bitcoin ETF options are a game-changer for traders
• 07:35 How options could impact Bitcoin’s volatility
• 11:38 Eric’s cautionary take after Bitcoin’s recent surge
• 13:13 Whether price rises will be due to gamma squeezes or a lack of resistance
• 16:04 Insights into the typical investors trading ETF options
• 16:58 Perceptions of bias against Bitcoin in traditional markets
• 18:53 What Eric hopes for under new SEC leadership
• 20:47 Why IBIT options might dominate the market
• 23:05 Comparison between futures and spot ETF options
• 25:20 What IBIT options mean for Deribit’s dominance
• 28:58 Are ether spot ETF options on the horizon?
• 29:25 What Eric thinks of the filings for SOL ETFs
• 32:37 News Recap

Learn more about your ad choices. Visit megaphone.fm/adchoices