TechFlow news, November 20 — According to Bloomberg, Alex Thorn, head of research at Galaxy Digital, said the launch of options trading for the $43 billion iShares Bitcoin Trust (IBIT) is expected to reduce Bitcoin market volatility and broaden the investor base. Nasdaq began offering options trading for the ETF on Tuesday.
In an interview with Bloomberg Television, Thorn noted that options trading will help dampen market volatility as Bitcoin ownership widens. Reduced volatility would allow investors to hold larger positions and view Bitcoin as a foundational investment asset rather than merely a high-risk speculative instrument.
He further explained that options products will provide institutional investors with additional hedging tools, enhance market liquidity, and influence retail trading behavior during bull markets. However, he also emphasized that while traditional financial institutions are entering the space, the crypto industry still needs to maintain its autonomy.
