HomeBreaking NewsBitcoin ETF Options Fuel Historic Price Rally

Bitcoin ETF Options Fuel Historic Price Rally

Posted: 20 November 2024, 15:09 CET | Updated: 9 January 2025, 15:38 CET 2 min read

BlackRock’s introduction of Bitcoin ETF options has electrified the market, sending Bitcoin prices soaring. Optimistic traders are fueling the momentum, with new record highs already achieved.

Nasdaq Inc. options trading has surpassed 350,000 contracts since its launch. The most sought-after contracts are set to expire in January (strike price $55) and December (strike price $65), reflecting a 25% premium over Bitcoin ETF’s closing price a day prior.

Bitcoin soared to a record-breaking $94,032 as these options launched. Analysts see this milestone as a mere stepping stone, anticipating further growth fueled by increasing investor appetite for Bitcoin ETFs.

The market is buzzing with optimism after Donald Trump’s election as president. His pledge to create a pro-digital-assets environment in the U.S. appears to be an early factor in driving prices higher.

Check out: Trump’s Impact on the Crypto Market: Expert Opinions

“Good start, demonstrating growing links between the crypto-native ecosystem and the traditional finance world,” comments Caroline Moren, co-founder of Orbit Markets.

Current trading volumes aren’t enough to dramatically shift market dynamics, but the unrelenting flow of positive developments is undoubtedly lifting investor sentiment.

Bitcoin futures trading has climbed to unprecedented levels. Source: bloomberg

Since its launch, the iShares Bitcoin Trust, the largest Bitcoin ETF, has amassed close to $29 billion in investments. Following the election, it gained an additional $5 billion in just a few days.

While Binance and Deribit still account for the bulk of crypto derivatives trading, the increasing interest from institutional investors in regulated digital assets within the U.S. is becoming more apparent. The record-setting open interest volumes on the Chicago Mercantile Exchange (CME Group) highlight this trend.

The arrival of innovative investment products is transforming the cryptocurrency market into a more sophisticated and enticing option for investors of all kinds.

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