US Securities and Stock Exchange Commission (SEC), some Bitcoin $114,414.66In the stock market investment funds (ETF) based on the option position limit from 25,000 contracts to 250,000 contracts made an important arrangement. This decision will provide more opportunities for Blackrock’s great funds such as Ishares Bitcoin Trust (IBIT). It is stated that the balance of competition in the market may also change with this step.
New Opportunities for Corporate Investors
According to experts, increasing the position limit paves the way for larger and ambitious options -based strategies especially for corporate investors. Thanks to this arrangement, it becomes possible to take positions on larger scales in strategies such as writing options in response to hand -held assets. In addition, funds are able to make more flexible moves for risk management.
NYDIG Research Department global chairman Greg Cipolaro said that this new regulation can increase liquidity and contribute to the decrease in the fluctuation on the products:
The latest increase in options position limit can contribute to further reducing Bitcoin’s volatility. This change enables the more aggressive implementation of strategies such as Covered Call.
Structural changes and operational effects
This change by SEC was simultaneously in-Kind Creation and Redemption mechanism, which was recently commissioned in Spot Bitcoin ETFs. This allows the fund shares to be replaced directly with Bitcoin or basis. It is suggested that the application can increase both liquidity and productivity in the markets.
GREG Cipolaro said that fund sponsors have long been waiting for these arrangements and will have significant consequences in the market structure:
These long -awaited steps were the changes that some fund sponsors demanded before Bitcoin ETF approval. These developments may have significant effects on market structure and investor access.
Experts point out that increasing the options position limit significantly improved the risk management tools of Bitcoin ETFs. At the same time, this development is thought to allow large -scale hedge operations and structured transactions to be more easily managed.
The new regulations of the SEC are interpreted in a way that can increase the effectiveness of the funds in the Bitcoin ETF market, as well as to increase their effectiveness in futures and options markets. In this way, it is argued that a wider investor base can be accessed to products.
Sector representatives think that the use of big funds, especially the use of these changes, may further agglomerate the competition. Blackrock’s IBIT fund is expected to strengthen the current market leadership.
In general, when it is evaluated, it is possible that this move of the SEC will have a configuring and supporting effect on the Bitcoin ETF market. It is suggested that regulations can increase corporate interest in the long run and strengthen the liquidity in the market.
Responsibility Rejection: The information contained in this article does not contain investment advice. Investors should be aware that crypto currencies carry high volatility and thus risk and carry out their operations in line with their own research.
