Bitcoin ETF options approved! This will enhance liquidity and attract large funds
The listing of Bitcoin ETF options will attract a large number of retail investors and may trigger a gamma squeeze phenomenon similar to GME and AMC. A gamma squeeze refers to the accelerated volatility when investors purchase options, causing market makers and trading platforms to continuously hedge, thereby pushing prices up and increasing demand for call options.
Due to the limited total supply of Bitcoin (21 million coins), a gamma squeeze would mean that the only sellers are those existing holders willing to trade at higher prices, making selling difficult. Additionally, the existing listed options products have not shown gamma squeezes, which may indicate that such concerns are unnecessary.
For institutional investors, Bitcoin ETF options provide more flexible hedging tools, helping to precisely control risks and returns. For retail investors, this is an effective way to participate in Bitcoin's volatility.
