US SEC approves BlackRock Bitcoin ETF options: a historic moment has arrived

The U.S. Securities and Exchange Commission (SEC) has approved options trading for BlackRock’s spot bitcoin exchange-traded fund (ETF), iShares Bitcoin Trust (IBIT).

This approval opens a new chapter for investors seeking to manage their Bitcoin investments through advanced financial instruments.

BlackRock approves Bitcoin ETF options, which may trigger a market chain reaction

The move allows for physically settled options on IBIT, further integrating Bitcoin into traditional financial markets. This new tool will enable investors to hedge their positions or amplify returns associated with Bitcoin price fluctuations.

The SEC's approval comes with strict oversight and position limits to reduce the risks posed by Bitcoin's volatility. Approved options will face conservative position and exercise limits, capped at 25,000 contracts. This measure is designed to minimize the possibility of market manipulation while ensuring a stable trading environment for investors.

This is a huge win for the Bitcoin ETF as it will bring in more liquidity and attract larger institutional players. I give a 70% chance of this ETF being approved by the end of May, so this is a welcome development.

This approval will “open the door for other Bitcoin ETFs to follow suit, creating a snowball effect in the market.” However, while the SEC’s approval is a crucial step, “further approvals from the Commodity Futures Trading Commission (CFTC) and the Options Clearing Corporation (OCC) are still required before trading can officially begin.”

Altcoins are probably going to get better soon

Each cycle generally consists of four main phases: accumulation, uptrend, distribution, and downtrend. Each phase has its own unique characteristics that influence market behavior and shape investment strategies.

We are about to enter an upward trend phase, driven by the following key factors

1. The upcoming US election

2. Rate cuts

3. Global ETF adoption

4. FTX Payouts

Historically, the fourth quarter has always been the best time for cryptocurrencies, and there’s a good chance we’ll see a similar trend this year.

The market fluctuated little over the weekend, and it will take two days to recover here, and wait for the direction to be determined on Monday. Currently, BTC fell back after hitting $64,000. After the U.S. stock market opened in the evening, it directly fell below $63,000. At 2 a.m., it rebounded near 62,350. The current market is consolidating around 63,000.

End

A bull market basically means that the market keeps rising for no reason every day, rising every day, and the market sentiment of contract positions rises every day. Then suddenly one day there is a flash crash of -5%, and then it continues to pull back and rise, and then the coin price reaches a new high within the month, and then it rises and rises and flash crashes again -7% and then continues to recover. Every flash crash is an opportunity.

Every time there is a flash crash, you can buy the bottom and then get a new high. You can earn 5-8% points. There are many flash crashes in the bull market. Of course, you can also buy after a correction at the end of September and hold it until the end of October. October is the last carnival of this year, and everything has just begun.