Last month, the U.S. Securities and Exchange Commission (SEC) approved options for BlackRock’s Bitcoin $60,446 ETF. Novogratz believes that this product will attract significant interest given Bitcoin’s high volatility, potentially raising its price. While options may increase liquidity, they could disrupt the traditional cyclic patterns seen in cryptocurrencies. Trends that used to develop based on investor demand in the spot market are now becoming much shorter, compelling large capital seeking speculative trades to track spot prices closely.

MicroStrategy Example

Novogratz believes that the trading volume of MicroStrategy illustrates the accumulated demand for Bitcoin ETF options.