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On Tuesday, options on BlackRock’s bitcoin ETF, IBIT, launched, seeing $1.9 billion worth of those options changing hands on the first day.
The launch of these options could mark a turning point for crypto markets, with implications for liquidity, volatility, and institutional adoption.
Eric Balchunas, senior ETF analyst at Bloomberg, explains why these options are so significant, who they’re designed for, and how they could impact the broader ecosystem.
Plus, he offers some cautionary advice to bitcoiners, gives insight into whether spot ether etf options are on their way, and discusses the odds of SOL ETFs launching.
Show highlights:
- What bitcoin ETF options are and why they are relevant for traders and investors
- Whether options will reduce the volatility of BTC
- Why Eric offers caution after seeing bitcoin surging so much recently
- What Eric thinks about the possibility for Bitcoin ETF options to spark a “gamma squeeze”
- What type of investors Eric thinks typically trade options
- Whether regulators treat Bitcoin differently and with prejudice
- What he would like to see from a new SEC
- Why IBIT options will likely dominate the market, according to Eric
- Why Eric was surprised that options on futures ETFs was so low compared to the spot ETFs
- How the launch of options will affect Deribit, the main exchange for trading options
- Whether options for ether spot ETFs are coming as well
- His thoughts on the news that spot SOL ETFs may be moving to the next phase
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EPISODE TRANSCRIPTGuest
- Eric Balchunas, Senior ETF Analyst at Bloomberg
Links
- Previous coverage of Unchained on bitcoin ETFs options: