TechFlow news, October 23 — According to The Block, the U.S. Securities and Exchange Commission (SEC) has previously approved options trading and listing for several spot Bitcoin ETFs. Multiple analysts expect this move to increase Bitcoin's market volatility.
Ed Tolson, CEO of Kbit, said that U.S. retail investors may use IBIT options as a tool to gain asymmetric return structures. He noted, "institutional market makers may need to buy when prices rise and sell when they fall, which could amplify volatility."
Michael Harvey, Head of Trading at Galaxy Digital, expects volatility to rise in the short term, but believes long-term adoption of yield-generating strategies by institutional investors could reduce overall volatility. With the SEC capping options positions at 25,000 contracts, Harvey thinks this may push some institutions toward trading crypto-related equities such as Coinbase or MicroStrategy instead.
