Wall Street significantly influences Bitcoin trading through the use of ETFs and options, led by BlackRock's iShares Bitcoin Trust.
Transformation of Bitcoin Trading
Bitcoin, once known as the playground for offshore traders, is now increasingly tied to the U.S. market thanks to BlackRock's iShares Bitcoin Trust, the largest Bitcoin ETF holding around $86 billion in assets.
ETF Options Market
The iShares Bitcoin Trust has catalyzed a booming market in ETF-linked options, with open interest reaching $34 billion this year and daily trading volume averaging $4 billion. As Asym 500 founder Rocky Fishman stated, 'It’s highly unusual for an ETF to develop an option market of this magnitude ever, let alone eight months after launch.'
Limitations and the Future of the Market
However, there are limits: U.S. rules only allow for 25,000 IBIT option contracts, which may hinder larger strategies. Nasdaq has requested to increase this limit tenfold, but the SEC has yet to respond. As Keyrock CEO Kevin de Patoul summarized, 'Eventually, all assets will be digital, and what we now call crypto will just be another part of the financial system.'
Wall Street is confidently transforming the Bitcoin market, and with increasing interest from institutional investors and the emergence of new tools, Bitcoin may soon become an integral part of the mainstream financial market.
