Kaiko published a report stating that ETF options are the latest bullish signal for BTC. Last week, several BTC ETF options made their debut, with BlackRock's IBIT options reaching a notional trading volume of $1.9 billion on the first day, totaling 354,000 contracts. In comparison, the trading volume for BITO options at its launch in 2021 was $360 million. This strong buying power highlights the robust demand for BTC-linked derivatives and the bullish market sentiment. Notably, more than 80% of the trading volume for IBIT's first-day options was for call options, reflecting a strong belief in the price increase of Bitcoin. Trading activity was primarily concentrated on options with near-term expirations, with contracts expiring in December 2024 dominating. The share of IBIT call options greatly exceeded that of the largest crypto-native options market, Deribit, where call options account for 64% of the trading. The launch of BTC spot ETF options could further accelerate institutional adoption. These tools allow investors to hedge risks and devise complex strategies to profit from Bitcoin's volatility. Additionally, they could drive the emergence of structured products, which provide customized investments with specific risk-return characteristics, typically developed by large financial institutions. This may attract new capital and a new wave of experienced institutional traders.

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