According to the cryptocurrency financial services company NYDIG, after the SEC raised the position limits for many Bitcoin funds, BlackRock's dominant spot Bitcoin exchange-traded fund may further expand.
NYDIG's Global Research Director Greg Cipolaro stated in a report on Friday that the SEC announced on Tuesday that it would increase the single contract position limit for all ETFs with options from 25,000 to 250,000 contracts. This move covers the iShares Bitcoin Trust ETF (IBIT) but does not include the Fidelity Wise Origin Bitcoin Fund (FBTC).
Cipolaro noted, "This change is expected to further expand IBIT's significant lead in the market while weakening FBTC's position as the second-largest options participant."
Additionally, CoinGlass data shows that in terms of assets under management, the second-largest Bitcoin (BTC) ETF, FBTC, has an asset management scale of $21.35 billion, while IBIT reaches $85.5 billion, approximately four times that of FBTC.
Cipolaro stated that the SEC's decision to raise the options position limits for Bitcoin ETFs could suppress Bitcoin's volatility and lead to increased spot demand.
He remarked, "This change supports more aggressive implementation of options strategies such as covered call writing." A covered call writing strategy refers to traders selling call options while holding the underlying asset. This practice can limit downside risk while also capping the profit potential of the trade.
Cipolaro added that lower volatility makes Bitcoin "more attractive on a risk-parity basis, potentially attracting new capital from institutional portfolios looking to balance risk exposure."
He also mentioned that the decrease in volatility drives increased spot buying, and this feedback loop could become a significant driver of sustained demand growth.
On Tuesday, the SEC advanced a series of regulatory approvals related to ETFs, most notably approving the physical creation and redemption of crypto ETFs, allowing shares to be exchanged for underlying cryptocurrencies instead of cash.
Cipolaro stated that this is a "key feature" that ETF issuers hoped for before their products were approved, and now that it has been realized, it will "have a significant impact on market structure and investor access."
He added that authorized participants (APs)—financial institutions that manage the creation and redemption of ETF shares—may not be able to leverage arbitrage activities and provide competitive pricing if they lack crypto capabilities.
"There are currently only two APs, Jane Street and Virtu, that also have corresponding crypto entities for bilateral trading," Cipolaro said. "We expect that brokers (APs) without crypto capabilities will acquire or partner to keep pace."
Related: Analysts: Bitcoin (BTC) enters a declining month, down 5%, with $110,000 as a key support level.
Original article: “BlackRock's Bitcoin (BTC) ETF Expected to Expand 'Overwhelming Advantage' with SEC Options Approval”
免责声明：本文章仅代表作者个人观点，不代表本平台的立场和观点。本文章仅供信息分享，不构成对任何人的任何投资建议。用户与作者之间的任何争议，与本平台无关。如网页中刊载的文章或图片涉及侵权，请提供相关的权利证明和身份证明发送邮件到support@aicoin.com，本平台相关工作人员将会进行核查。
