The U.S. Securities and Exchange Commission (SEC) has decided to increase options limits for Bitcoin ETFs, which has significant implications for the market.
Change in Options Limits
This week, the SEC increased the allowed number of options contracts from 25,000 to 250,000 for all ETFs with options, including BlackRock’s iShares Bitcoin Trust ETF, as reported by Greg Cipolaro, NYDIG's global head of research.
Impact on Bitcoin Volatility
Cipolaro mentioned that the increase in options limits could reduce Bitcoin's volatility and lead to greater demand in the spot market. This change enables more aggressive strategies such as call option selling.
ETF Market and New Opportunities
The SEC also approved several regulatory measures for ETFs, which is expected to impact market structure and investor access. However, not all financial institutions will be able to take advantage of new opportunities due to a lag in crypto trading capabilities.
The changes made by the SEC could significantly affect the Bitcoin ETF market and enhance the competitiveness of the products offered by various financial institutions.