The U.S. Securities and Exchange Commission (SEC) recently approved additional U.S. spot Bitcoin ETF options, leading to various market predictions.

Approval of New ETF Options

On October 18th, the SEC gave the green light for these products to be traded on the New York Stock Exchange (NYSE) and the Chicago Board Options Exchange (Cboe). NYSE American received approval to offer options for Fidelity’s BTC fund, FBTC, and ARK 21Shares’ ARKB. Cboe will trade Grayscale’s GBTC, mini BTC, and Bitwise’s BTIB. This follows the recent approval of BlackRock’s IBIT options.

Expert Opinions on Market Impact

Some analysts believe this could lead to increased volatility and liquidity in Bitcoin. Options allow professional traders to speculate and employ risk management strategies without owning the underlying BTC asset.

BTC Market Liquidity and Volatility

Michael Harvey, head of franchise trading at Galaxy Digital, projected a short-term spike in volatility, which could be reduced in the long run. Despite the differing opinions on volatility and price impact, analysts generally agreed that the approval would inject more liquidity into BTC markets.

The diverse opinions on the SEC approval highlight the potential changes in Bitcoin market dynamics. Some increased liquidity in BTC markets was anticipated by analysts, yet the impact on volatility remains debated.