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NASDAQ begins listing options today for BlackRock’s Bitcoin spot ETF, ticker symbol IBIT, marking a pivotal moment in the Bitcoin derivatives market. This step mirrors traditional asset trends, where derivatives often expand to 10-20 times the market cap of the underlying assets.

QCP Capital highlights that the listing is expected to bring a wave of institutional investors to Bitcoin derivatives. Many institutions, constrained from accessing native crypto options markets like Deribit, now have an avenue to generate yield on long-term spot ETF holdings. This could contribute to further compression of implied volatility in Bitcoin options.

The development follows a pattern of institutions leveraging traditional financial instruments to gain Bitcoin exposure. According to Q3 13F filings, institutional ownership of MicroStrategy, a long-standing proxy for Bitcoin, rose sharply. The number of institutional holders increased from 667 to 738, with Vanguard notably boosting its holdings by nearly 16 million shares—a 1,000% surge.

In related news, Goldman Sachs has announced plans to spin off its digital asset platform, underscoring the growing fusion of crypto and traditional finance sectors.

Options trading also reflects bullish sentiment in the market. QCP Capital notes the December $100,000 strike has the highest open interest, with Bitcoin’s spot price stabilizing above $90,000. Implied volatility flies dropped by 1 point over the past week, signaling a solid foundation for potential upward movement in Bitcoin prices.

This milestone positions Bitcoin derivatives for further integration into mainstream financial markets, drawing institutional capital and expanding market dynamics.