The US spot Bitcoin ETF market is seeing a new wave of trading options, including options. This move could attract liquidity and long-term investors to the Bitcoin ecosystem, but there are downsides.

According to a report by CryptoQuant, options for spot Bitcoin ETFs could increase the paper supply of BTC, allowing investors to access the digital asset without investing directly.

The SEC has approved the listing and trading of BlackRock’s iShares Bitcoin Trust (IBIT), the largest spot Bitcoin ETF on the market. Options allow investors to buy or sell cryptocurrencies at a predetermined price and date.

IBIT options are a new tool for investing and speculating on the price of BTC, marking a new step forward in Bitcoin’s acceptance in traditional finance. 🌐

However, options can also increase the paper supply of BTC, as seen in the 2022 bear market when the amount of BTC in the futures market increased from 279,000 to 549,000 BTC. 📈