CoinWorld reports:
Bitcoin ETF options have been approved by the U.S. Securities and Exchange Commission, which is a major development for BlackRock’s BTC ETF. This decision allows the Nasdaq International Securities Exchange to trade options on the iShares Bitcoin Trust (IBIT), which may reshape Bitcoin’s investment strategy.
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Unlocking the Future: BlackRock BTC ETF, SEC Approval, and Smart Bitcoin Investments
U.S. Securities and Exchange Commission Approves Bitcoin ETF Options
The U.S. Securities and Exchange Commission has approved options trading for BlackRock’s widely traded Bitcoin exchange-traded fund. This beneficial approval comes months after BlackRock’s request was filed in March 2024.
Federal Reserve Triggers Bitcoin Rebound
The chart shows the price trend of Bitcoin relative to its 200-day moving average from September 2023 to September 2024. We can see a significant rebound forming as Bitcoin tests the 200-day moving average. This may be influenced by the Federal Reserve’s monetary policy decisions to address market concerns.
Nasdaq ISE has submitted several amendments to address concerns about market manipulation and excessive risk-taking. One key change sets the position and exercise limits for IBIT options at 25,000 contracts, as described as “extremely conservative,” considering the market’s size and the liquidity of the trust.
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Impact of Bitcoin ETF on BTC Investments
The introduction of IBIT options provides investors with new tools to manage Bitcoin risks. These options will settle in physical form and have American-style operations, providing hedges against Bitcoin-related risks. This development is expected to attract more institutional investors to invest in Bitcoin, but this expectation may also prove to be wrong.
Market Correlation Trends
Recent data shows a strong correlation between digital assets and the U.S. stock market. The chart shared earlier illustrates this trend. As we mentioned, the price trend of Bitcoin is closely related to broader market patterns.
Caroline Moren, Co-Founder of Orbital Markets, noted, “Macro factors are currently driving cryptocurrency prices, and this is expected to continue throughout the loose cycle of the Federal Reserve, unless we see specific black swan events in cryptocurrencies.”
Looking ahead
Investors are closely watching comments from Federal Reserve officials and the release of the Personal Consumption Expenditures Price Index.
McNulty, Director of Trading at Arbelos Markets, stated, “We believe the speakers are more important than personal consumption expenditure inflation data, as the reaction function of the FOMC is crucial at times when the market is trying to determine.”
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The approval of Bitcoin ETF options by the U.S. Securities and Exchange Commission is an important step towards mainstream adoption. It opens up new avenues for Bitcoin investments and may influence future regulatory decisions in the cryptocurrency space.
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BlackRocks Bitcoin ETF Options Game Changer for Investors by the US Securities and Exchange Commission
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