BlackRock Bitcoin ETF Set for ‘Monstrous Lead’ with SEC Options Boost
🔥 BlackRock’s IBIT ETF is poised to extend its dominance in the crypto ETF race after the SEC turbocharged options trading limits for Bitcoin funds this week. The regulator hiked position limits 10x, allowing 250,000 options contracts for eligible ETFs—including IBIT but excluding Fidelity’s FBTC—a move analysts say will cement IBIT’s lead 16.
📊 With $85.5B in assets (4x FBTC’s $21.35B), IBIT’s edge could grow as institutional traders deploy strategies like covered calls to hedge risk and amplify spot demand. NYDIG’s Greg Cipolaro notes this may suppress Bitcoin’s volatility, making it more attractive for risk-parity portfolios: “Lower volatility could fuel a feedback loop of sustained buying” 16.
🔄 The SEC also greenlit in-kind creations/redemptions, letting investors swap ETF shares for actual Bitcoin—a game-changer for market efficiency. But only Jane Street and Virtu currently have the crypto infrastructure to capitalize, pressuring rivals to partner up 112.
⚡ As IBIT’s revenue outpaces even BlackRock’s S&P 500 ETF, the stage is set for a liquidity surge—and potentially a fresh BTC rally. Stay tuned for the next chapter in the ETF arms race. 🚀