Cash-settled Bitcoin ETF options are set to debut on CBOE Global Markets this December 2. With this, the growing trend of Wall Street’s interest in the largest Cryptocurrency in market capitalization is ratified.
These new investment vehicles complement the arrival of various Bitcoin instruments to the US stock market. In that sense, both institutional and retail portfolios will have the possibility of gaining exposure to the crypto sector through higher volatility tools. Until now, this possibility was restricted to investors with access to foreign exchanges such as Binance.
However, with the extension on the CBOE, large portfolios can open positions in Bitcoin options without facing risks beyond volatility. The enthusiasm among Wall Street portfolios for these instruments is enormous, which debunks the old belief that institutionals fear BTC.
The launch of cash-settled Bitcoin ETF options is BTC’s third major entry into Wall Street domains in 2024. The first of these, as is widely known, came in January with the approval of ETFs at counted. Last week, options on these spot products exploded onto Nasdaq and the NYSE.
Bitcoin ETF Options Are a Response to Risk Demand
An irrefutable fact in the financial world is that without demand there is no supply. Consequently, the issuance of new products and options related to Bitcoin is due to the enormous acceptance. Within Wall Street, not all investors are conservative or old school. The appetite for risk is a trend of notable strength among institutions.
The acceptance of Bitcoin in the financial herd is also an element that should not be lost sight of. After years of passing it by, large investors realized that it is a truly valuable asset. This value is based on scarcity, security and decentralization.
Hence, playing with Bitcoin futures is already equivalent to betting on oil futures or other commodities. As time passes and Wall Street gets used to crypto winters, acceptance of Bitcoin as the new gold will become widespread. The constant appearance of new forms of betting on Wall Street seems to pave the way for that outcome.
Bitcoin’s popularity among large investors is reflected in many ways. For example, the debut of Bitcoin spot ETF options last week saw huge trading. So much so, that a similar phenomenon has not been seen since the debut of Facebook options in 2012, according to CNBC.
For their part, the currency spot ETFs in their first year completely overshadowed the performance of the gold ETFs in their first year.
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