The US Commission for Securities and Exchanges recently introduced a key change affecting Bitcoin ETF, increasing the ceiling on the number of options for optional funds in this category. According to the Cryptographic Financial Services Company NYDIG, this adjustment could give the BlackRock Ishares Bitcoin Trust (IBIT) an even stronger advance on the market.
In short
- The SEC is the limit of options on Bitcoin ETF at 250,000, strengthening Ibit's advantage in front of its competitors like FBTC.
- According to Nydig, this increase could accentuate Ibit's “monstrous” advance and reduce the volatility of the Bitcoin price.
- The widening of options could attract more institutions in search of a stable and long -term exposure to Bitcoin.
SEC modifies the rules for Bitcoin options
On July 29, the SEC approved a multiplication per ten of the positions of options in options. The number of authorized contracts has increased from 25,000 to 250,000. This applies to all funds negotiated on the stock market (ETF) with listed options, with the exception of Fidelity Wise Origin Bitcoin Fund (FBTC), which was not included within the extended limit.
Greg Cipolaro, research manager at Nydig, explained that this adjustment will probably increase the dominant advantage of Ibit on other funds. Meanwhile, this could also affect the position of FBTC as the second player in the options market. He said:
The change is likely to expand the monstrous advance that Ibit already has on the other actors, while hampering the position of FBTC as the second largest player in the options.
Released limits pave the way for a new expansion of the BlackRock ETF
The BlackRock ETF Bitcoin has already experienced record growth. In June, Bitcoin Archive reported that Ibit exceeded the course of $ 70 billion Faster than anything ETF in history, including those related to gold. As of August 4, he ranked as the second best ETF in terms of monthly capital entries, reflecting high demand.
Coinglass data show that Ibit Now holds around $ 85.50 billion in management assets (AUM)which is a size about four times that of FBTC, which manages around $ 21.35 billion. The increase in contract limits should fuel additional growth by allowing greater and more flexible trading strategies within the fund.
Greg Cipolaro explained that the increased limit is likely to further reduce the volatility of the price of bitcoin. Although its fluctuations have already started to fade, he added that Bitcoin always attracts traders seeking to take advantage of price movements, especially while the volatility of traditional markets continues to decrease.
The expansion of the rules for ETFs could energize demand in cash and transform the structure of the market
The wider effect of this change of rule could exceed the trading activity. Cipolaro stressed that although these strategies can slightly reduce potential yields for sellers of options, they could also attract more institutional investors. The slightest price fluctuations often attract companies seeking balanced exhibition, and the recent bitcoin trend towards reduced volatility reinforces this attraction.
He added that as Bitcoin becomes less unpredictable, it becomes more suitable for long -term wallets focused on a stable risk allowance. This change could attract Fresh capital and stimulate demand in cashwhile more investors are looking for direct exhibition via traditional markets.
The decision of July 29 of the SEC was part of a wider set of approvals related to ETFs, which included:
- Approval of creation and redemption in kind to make the transfer of assets of ETF faster and more efficient.
- Validation of Flex options, allowing funds to personalize contracts according to the needs of investors.
- Opening of the trading of options on the Hodl ETF, marking its very first approval for such an activity.
- Approval of Bitwise's request for rating and trading of Bitcoin and Ethereum Sound ETF on regulated scholarships.
Cipolaro believes that these movements will reshape the way in which traders interact with the ETF linked to the crypto. He sees them as steps that could widen access and improve the entire market manager.
These long anticipated movements, some desired by fund sponsors since before the first approvals of Bitcoin ETF, will probably have significant impacts on the structure of the market and the access of investors.
Greg Cipolaro
The flows of ETF in cash reveal an evolution of the trends carried by institutional activity
Despite the increase in contract limits and increasing institutional interest, investors' activity has been mixed. According to Wu Blockchain, the ETF Bitcoin in cash recorded Net outings totaling $ 643 million Between July 28 and August 1, ending a series of seven weeks of entrances.
In addition, ETHEREUM ETHEREUM in cash attracted $ 154 million over the same period, marking their twelfth consecutive week of positive entries. This suggests a possible displacement of investors' interest in Ethereum funds. However, the increase in the trading capacity of options could bring more institutional investors to Bitcoin.
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