**Bitcoin spot ETF options trading approved, the market may usher in an explosive rise! 🚀**
BlockBeats news, on September 21, Jeff Park, head of strategy at Bitwise Alpha, published a long article on social media, saying that "SEC approval of BlackRock Bitcoin spot ETF options trading" will lead to an explosive rise in Bitcoin. This news has attracted widespread attention in the cryptocurrency circle, and everyone is speculating whether this will be an important turning point in the Bitcoin market.
Jeff Park believes that the market is about to witness the most incredible rise in "volatility" in financial history, which requires a fuller explanation. He pointed out that several characteristics of Bitcoin, the nature of the regulated options market, and the powerful combination of the two are the main reasons for this phenomenon. Park believes that this approval marks the biggest progress that the cryptocurrency market may have made.
**Bitcoin's "partial banking"**
For the first time, the nominal value of Bitcoin will be "partially banked" through ETF options. Although the limited non-custodial supply of Bitcoin is its greatest advantage, it is also a drag that limits the ability to create synthetic leverage. Now, Bitcoin will have a regulated market for the first time, and the U.S. Commodity Futures Trading Commission will protect clearing members from peer risk. This means that synthetic notional exposure to Bitcoin can grow exponentially.
**Unique Volatility Characteristics**
In addition, Bitcoin has a unique volatility characteristic, where when the spot price rises, so does volatility, which means delta increases faster. This can be explosively recursive for Bitcoin when traders who short gamma hedge (gamma squeeze). Short traders are forced to keep buying at higher prices, and more buying leads to more upside. A negative vanna gamma squeeze can send the price of Bitcoin skyrocketing.
**A First for the Financial World**
In summary, the Bitcoin ETF options market is the first time the financial world has seen regulated leverage on a truly supply-constrained perpetual commodity. Things can get crazy, so crazy that regulated markets may be forced to shut down. But what is extraordinary about Bitcoin is that there will always be a parallel, decentralized market that cannot be shut down, unlike stocks.
**Welcome to discuss! **
Dear friends, what do you think of this news? Do you think the Bitcoin market will reach a new peak as a result? Welcome to share your views and insights in the comment area, let's discuss this exciting topic together!
