I didn't really want to talk about this topic. After all, 99% of my friends haven't read the original article, so no matter what I say, it will be difficult to change the minds of most friends. If we say intuitively whether the launch of#BTCspot ETF futures is good or bad, at this stage, it is more good.

First: It increases liquidity and reduces the amplitude (volatility) of BTC.

Second: Increased hedging can reduce the risk of price fluctuations. Some friends may not understand this, because the current#Bitcoinspot ETF is a spot transaction, and the so-called hedging is either to hold on or to sell. Some friends may ask why it cannot be hedged on CME. This is a bit complicated.

Simply put, IBIT options are options tools based on BTC spot ETFs, which allow investors to manage risk or invest in the price of IBIT ETFs. They are suitable for investors who want to indirectly invest (hold) BTC through ETFs.

BTC futures in CME are futures contracts directly based on BTC prices, suitable for large traders, institutional investors or hedge funds, especially those who want to conduct short-term speculation or hedging through leveraged trading.

Third: Reduced market manipulation.

Position and exercise limits for IBIT options are based on standard rules for trading volume and the number of shares outstanding. Under these rules, position and exercise limits can range from 25,000 to 250,000 contracts. However, the revised proposal sets a fixed position and exercise limit for IBIT options of 25,000 contracts. This limit is considered "extremely conservative" and consistent with IBIT's market capitalization, average daily trading volume, and number of shares outstanding.

But these are all for the current period. As trading volume increases, it is very likely that the amplitude will change from reducing to expanding, and BlackRock is likely to reapply for larger positions and exercise limits.

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