Cryptocurrency experts anticipate the introduction of spot bitcoin ETFs to trigger a new wave of crypto products. Catherine Clay, Global Head of Derivatives at Cboe Global Markets, sees options as a natural progression for bitcoin ETFs, providing investors with downside hedging and risk-defined exposures into bitcoin.
Cboe, the largest U.S. options exchange, has filed with the SEC to offer options linked to bitcoin exchange-traded products, expecting trading to commence later this year.
Financial futurist Dave Nadig suggests that options on crypto funds could attract institutional investors who were previously hesitant about the digital asset class.
Nadig also envisions zero-day options as the ultimate goal for bitcoin derivatives products, potentially appealing to both retail and institutional players.
However, Cboe’s Clay urges caution, emphasizing the need for intelligent and thoughtful approval processes before exploring such advanced options trading.