Spot Bitcoin ETF Options Are Here. Why You ‘Can’t Overstate’ Their Importance - Ep. 739

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

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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

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