Nasdaq Launches Options Trading for Bitcoin ETF

The launch of options trading on BlackRock's iShares Bitcoin Trust (IBIT) on Nasdaq marks a significant milestone in the crypto market, coinciding with Bitcoin reaching a new all-time high of over $94,000. Analysts, including Alex Thorn from Galaxy Digital, believe that this development will enhance liquidity, attract institutional investors, and potentially reduce Bitcoin's volatility by allowing more sophisticated risk management strategies. The first day of trading for these options saw impressive figures, with $1.9 billion in notional exposure and a 4.4:1 ratio of call options to put options, indicating strong bullish sentiment among traders. This shift towards options is expected to create a more robust ecosystem around spot Bitcoin ETFs, leading to greater adoption and stability in the market. Experts suggest that as options become more widely available, including potentially to retail investors, Bitcoin's perception may shift from a high-risk asset to one associated with fundamental use cases.