According to ChainCatcher, Galaxy Digital's head of research, Alex Thorn, stated that the listing of options for the $43 billion BlackRock IBIT could reduce volatility and increase the base of Bitcoin investors.
Thorn said in an interview on Tuesday: "Over time, as it is held more widely, volatility will decrease, and options will help dampen volatility. As volatility decreases, people can hold larger position sizes." Nasdaq began offering options trading for ETFs for the first time on Tuesday. Thorn stated that if volatility decreases, more investors will view Bitcoin as a fundamental use case rather than just a high-risk bet.
He said that options will allow institutions to hedge more against Bitcoin and increase liquidity, while also affecting retail trading during a bull market. He added that the crypto industry must also figure out how to maintain control as traditional finance enters the space.
