Recently, the U.S. Securities and Exchange Commission (SEC) approved the listing and trading of Bitcoin ETF options. This may sound a bit complicated to many people, so let's explain what this means in a simpler way.

First of all, what are Bitcoin ETF options? ETF stands for exchange-traded fund, which is an investment tool that allows investors to invest in a basket of assets as easily as buying and selling stocks. A Bitcoin ETF is an ETF that tracks the price performance of Bitcoin. When this ETF has options, it means that investors can buy or sell the right to buy or sell the ETF at a specific price at a certain point in the future, rather than directly owning Bitcoin itself. In this way, the value of Bitcoin is "divided" into smaller parts, allowing more people to participate in the Bitcoin market in this way, thus breaking some previous market restrictions.

For investors, this means that they can use leverage to manage their portfolio more flexibly. Leverage allows people to control larger amounts of investment with less money, so that they can develop more diversified investment strategies. For example, if you expect the price of Bitcoin to rise, you can choose to buy a call option; conversely, if you predict that the price will fall, you can choose to buy a put option.

In addition, since Bitcoin's price volatility is very high, this characteristic may become more pronounced as more financial products such as ETF options emerge. There is a phenomenon called the negative gamma effect, in which option sellers need to adjust their positions to maintain their risk level when market prices change, which often leads to further increases in the price of the underlying asset.

It is important to recognize that even with these new financial products, the fixed total amount of Bitcoin will not change. That is, no matter how many Bitcoin-related derivatives are created, the actual number of Bitcoins in circulation in the market will not increase, which maintains the essential characteristics of Bitcoin as a scarce asset. At the same time, ETF options also provide market participants with more opportunities to explore and discover the true value of Bitcoin.