Nasdaq commenced trading bitcoin ETF options yesterday, starting with the iShares Bitcoin Trust (IBIT) fund from BlackRock. Bitcoin reacted to this event by setting another all-time record, exceeding the $94,000 level. According to Richard Teng, CEO of Binance, these record notations result from the fact that Bitcoin ETF options represent another breakthrough for the cryptocurrency market. They will provide greater market liquidity, create new credit opportunities and even further attract institutional investors to cryptocurrency, as well as stabilize the market.
“Options trading has the potential to increase liquidity in the crypto ecosystem, providing investors with additional tools for hedging and speculation. Institutional players, who often seek advanced risk management instruments, may find options particularly attractive. By offering new exposure management mechanisms, options trading can attract long-term capital, increasing market stability and expanding participation beyond retail investors,” comments Richard Teng.
The CEO of Binance believes that the introduction of options can also open up new credit opportunities in the crypto space. Institutional lenders may feel more confident in providing loans secured by ETFs, as options provide clearer pricing and risk assessment mechanisms.
“This could lower borrowing costs and increase capital flows, creating a more dynamic and resilient market environment. Additionally, with the increase in options trading, increased interest in open positions may reduce Bitcoin volatility, contributing to generally healthier market conditions,” says Richard Teng.
The Binance representative also notes that the launch of BTC ETF options is a natural progression in the evolution of crypto markets, adapting them to the advanced structures characteristic of traditional finance. Just as derivative markets have historically strengthened engagement in stocks and commodities, a robust crypto derivatives ecosystem could significantly increase the scale of institutional adoption.
“Although innovation always entails uncertainty, the convergence of traditional and crypto markets, through tools such as options, suggests market maturation. These events are a response to existing demand, but also a catalyst for new opportunities. It is reasonable to expect that products such as BTC ETF options will play a significant role in sustaining and accelerating the momentum of digital asset development,” concluded Richard Teng.
Source: https://managerplus.pl/nasdaq-wprowadza-opcje-na-etf-y-bitcoina-rekordowa-reakcja-rynku-66768
