Joshua Lim, co-founder and CEO of Arbelos Markets, joins the conversation to unpack the potential impact of Bitcoin ETF options on the crypto landscape. He discusses how these options could unlock significant capital and perhaps fuel an altcoin boom. Joshua explores the implications for Bitcoin volatility and DeFi lending, along with the expected changes in the options markets. Additionally, he speculates on how the upcoming U.S. presidential election might influence Bitcoin's trajectory, shedding light on strategic market dynamics.
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insights INSIGHT
Options: Asymmetric Financial Instruments
Options are asymmetric financial instruments, giving the owner the right but not the obligation to buy or sell an asset.
This asymmetry allows for leveraged exposure and yield generation.
insights INSIGHT
Bitcoin Price Impact: Two Perspectives
Some predict a "gamma squeeze" like GameStop, with retail investors using short-dated options to drive up Bitcoin's price.
Others argue that the existing mature options market and the lack of a gamma squeeze with BITO options suggest otherwise.
insights INSIGHT
Market Dynamics and Volatility
The launch of IBIT options may lead to increased issuance of structured products, potentially lowering Bitcoin volatility.
It could also compress the spread between Bitcoin and its proxy equities like Coinbase and MicroStrategy.
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With Bitcoin ETF options on the horizon, the crypto market is bracing for significant changes. In this episode, Joshua Lim, co-founder and CEO of Arbelos Markets, joins us to explain what the launch of Bitcoin ETF options means for the broader market. Could they unlock vast amounts of capital and set off a new altcoin boom? Josh also dives into the potential effects on Bitcoin volatility, DeFi lending, and even the onchain options markets. Plus, what could the 2024 U.S. presidential election mean for Bitcoin?
Show highlights:
What are options and why they are significant for bitcoin ETFs
How they will affect the price of BTC
When options will actually launch and what needs to be done
How the launch of IBIT options could lower Bitcoin volatility and compress spreads
Whether dominant players in derivatives will suffer from this launch
How the launch of options could lead to an “altcoin boom”
Why Josh thinks the SEC delayed its decision on ether ETF options
How rising Bitcoin options interest could trigger volatility during major options expiries
What Josh thinks the impact of the US presidential election will be on the markets
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