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BTC ETF Inflows Surge: Spot Bitcoin ETFs in the US have attracted over $27 billion in cash inflows, growing their assets under management (AUM) to more than $95 billion.
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Nasdaq is set to list options for BlackRock's IBIT, marking a significant step towards mainstream Bitcoin adoption, with regulatory approvals from SEC and OCC.
As the historical alignment for the US pro-crypto regulators prepares for a major shift in Bitcoin (BTC) mainstream adoption, institutional investors have continued to double down on funds deployment. In the latest updates, Nasdaq Head of ETP Listings, Alison Hennessy, confirmed on Monday that the Options for BlackRock’s IBIT will begin trading as early as today.
“Our intent at Nasdaq is to list and trade these options as early as tomorrow. Getting these options listed on IBIT into the market I think will be very exciting for investors because that’s really what we have heard from them,” Alison Hennessy, head of ETP listings at Nasdaq, stated.
The listing of options for BlackRock’s IBIT has been given the green light by all the regulators including the Options Clearing Corporation (OCC).
The Securities and Exchange Commission (SEC) approved the listing of options for spot Bitcoin ETFs last month. Meanwhile, the Commodities Futures Trading Commission (CFTC) argued on Friday that the listing of options for spot Bitcoin ETFs would not fall under its jurisdiction, thus paving the way for OCC’s approval.
Why Options Being Listed on Bitcoin ETFs is Huge Moment
The imminent listing of options for BlackRock’s IBIT will set the stage right for mainstream adoption of Bitcoin and other digital assets. Moreover, the launch of spot Bitcoin ETF options resulted in a major integration of BTC into traditional financial markets, thus significantly boosting its liquidity and volatility.
The options industry is the foundation of the capital markets as it provides liquidity, price discovery, and risk management tools for investors.
in traditional markets, equities & commodities for ex, derivatives = 10-20x the size of the underlying market cap. this is starkly inverted in btc where listed options value is <2% of btc's market cap pic.twitter.com/oyZWuUqAyR
— Kelly Greer (@kellyjgreer) August 15, 2024
Impact on BTC Price
Bitcoin price has grown exponentially since the approval of spot BTC ETFs in the United States earlier this year. The US spot BTC ETFs have grown to more than $95 billion in assets under management (AUM) after attracting over $27 billion in cash inflows.
During the 2017 bull market, #Bitcoin surged 156% past its previous all-time high before the first major correction of -39%. In 2020, $BTC rose 121% before a -32% correction.
— Ali (@ali_charts) November 18, 2024
If history repeats, $BTC could reach at least $138,000 before experiencing the first major pullback. pic.twitter.com/eM3kLt6DA9
From a technical analysis standpoint, Bitcoin price is well positioned to rally beyond $100k in the coming weeks. However, crypto analyst Ali Martinez noted that Bitcoin price must consistently close above $91k in the coming weeks to validate a rally towards $138k before a major pullback.