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After Bitcoin ETF options are approved, analysts expect market volatility to increase

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2024-10-22 21:23:47
The Securities Exchange Commission (SEC) has approved the trading of options on multiple Bitcoin spot ETFs, which analysts expect will increase Bitcoin's market volatility. Kbit CEO Ed Tolson believes that retail investors will use Bitcoin ETF options for speculation, potentially amplifying price volatility. While Michael Harvey of Galaxy Digital pointed out that while volatility is likely to increase in the short term, long-term volatility is likely to diminish as institutions adopt yield strategies. The SEC also capped options positions at 25,000 contracts to reduce the risk of market manipulation.
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