Coin World News Report:
Bitcoin ETF Options Approved: Will the Price of BTC Soon Surge?
Recently, the U.S. Securities and Exchange Commission approved the options trading of the BlackRock iShares Bitcoin Trust ETF. Will the price of BTC soon experience a significant surge?
Fractionalized Custody of Nominal Value: The introduction of Bitcoin ETF options will, for the first time, allow the nominal value of Bitcoin to be “fractionalized” through synthetic means, potentially breaking through the existing market limitations caused by the restricted supply of the Bitcoin spot market.
Leverage and Portfolio Management: Bitcoin ETF options enable investors to utilize leverage for long-term portfolio management, a capability not present in the current market. This new leverage trading tool provides investors with more investment strategies, such as using long-term call options to hedge risks or conduct asset allocation.
Volatility Structure and Negative Gamma Effect: Bitcoin’s unique volatility structure, specifically volatility skew, will become more pronounced as the synthetic market expands. The negative gamma effect in the options market will force the market to buy more Bitcoin options once the price rises, further driving the price up. This phenomenon is known as “negative gamma squeeze,” which propels the market like a rocket.
Bitcoin’s Uniqueness: Unlike traditional stocks or commodities, Bitcoin cannot dilute its value by increasing the supply. This means its scarcity will be fully utilized. The introduction of ETF options market will not change this characteristic; instead, it will provide Bitcoin with more leverage and price discovery functionalities.
Regulated and Limited Supply Market: This change makes Bitcoin the first asset with truly limited supply in a regulated synthetic market, which will attract more institutions and qualified investors to enter the market. The uncertainty and volatility of the future market may further increase due to the impact of ETF options market. BlackRock’s application has already been approved. More investors can participate in the Bitcoin market through options, no longer limited to buying and holding spot Bitcoin. This helps promote market liquidity, increase market demand for Bitcoin, and provide more opportunities for hedging and arbitrage trading.
Kamala Harris Finally Breaks Silence on Cryptocurrency: During a fundraising event on Wall Street, Harris pledged to encourage investment in artificial intelligence and digital assets.
On September 22, Harris stated during a fundraising event in Manhattan, “We will work together to invest in America’s competitiveness, invest in America’s future. We will encourage innovative technologies like artificial intelligence and digital assets while protecting our consumers and investors.”
Harris further stated, “We will create a safe business environment with consistent and transparent rules. We will invest in semiconductors, clean energy, and other future industries, while reducing unnecessary bureaucracy.”
According to Polymarket data, Harris has a 52% chance of defeating Donald Trump and is leading in four out of the six swing states. After keeping quiet about cryptocurrencies, Vice President Kamala Harris finally publicly commented on digital assets during the presidential campaign.
Bitcoin (BTC) surged over 8% last week, surpassing $63,000, due to the recent interest rate cut by the Federal Reserve. After rebounding from the 50-week moving average line, BTC is currently testing the key resistance level above $64,000.
The recent rise in Bitcoin over the past two weeks has alleviated concerns about further decline in the cryptocurrency market. The Bitcoin Fear and Greed Index climbed above 50% on Monday, indicating increasing optimism. Investors are becoming more optimistic about a potential bull market. Currently, I personally believe it is relatively worth considering for allocation.
OP
The Layer 2 solution on Ethereum is the “safe choice” for analysts and is set to benefit greatly from the upcoming EigenLayer launch, which is expected to significantly enhance Ethereum’s ecosystem. It maintains security and decentralization while providing scalability and lower transaction costs, supporting optimistic price predictions.
TIA
Modular blockchain platform Celestia (TIA) achieved an astonishing 31.5% surge in just two days, thanks to the recent Lemongrass update, making headlines. Despite this, Celestia still faces significant price adjustments, but due to filling a unique niche market without direct competitors, it is expected to become a top 20 token.
TAO
Bittensor (TAO) is an AI-focused project that has undergone significant adjustments and is expected to experience substantial growth. It is projected to enter the top 20 and potentially bring returns of 20x to 30x. The trading price of TAO is $455.88, with a 6.25% increase in the past day and a 40.55% increase in the past week. The token has broken out of the recent consolidation pattern, indicating a strong bullish trend in the future.
ENS
With partnerships such as integration with PayPal, ENS is considered a high-beta product that may outperform Ethereum itself if the overall market rises.