QCP Capital, a Singapore-based trading firm, expects a new wave of institutional investors to enter the crypto market with the debut of BlackRock’s Bitcoin ETF options on Nasdaq. According to QCP Capital, the introduction of IBIT options could drive an influx of high-net-worth investors, potentially leading to further compression of implied volatility.
The analysts at QCP Capital described the Nasdaq listing as a “milestone” for the Bitcoin derivatives market, highlighting that derivatives often grow to exceed the size of their underlying assets by 10 to 20 times. This development is poised to attract a new wave of institutional investors who face restrictions on accessing native crypto options markets like Deribit.
This development is poised to attract a new wave of institutional investors who face restrictions on accessing native crypto options markets like Deribit. – QCP Capital
The latest development mirrors growing interest in using traditional assets as a proxy for Bitcoin exposure. MicroStrategy has seen a surge in institutional holders during Q3, with recent filings showing Vanguard increasing its stake in MicroStrategy by 1,000%. This underscores heightened institutional activity in Bitcoin-related investments.
Bitcoin’s recent price stability above $90,000 could set the stage for further growth, analysts said, pointing to the December $100,000 strike holding the “highest concentration of open interest.” As of press time, Bitcoin is trading at $92,335, with momentum building in both spot and derivatives markets.
Predictions:
Based on the analysis, we can make the following predictions:
1. Increased institutional investment in Bitcoin: The debut of Bitcoin ETF options on Nasdaq is expected to attract a new wave of institutional investors, leading to increased investment in Bitcoin.
2. Further compression of implied volatility: The introduction of IBIT options could lead to further compression of implied volatility, making it more attractive for investors to enter the market.
3. Growth in the Bitcoin derivatives market: The Nasdaq listing is expected to drive growth in the Bitcoin derivatives market, which could exceed the size of the underlying asset by 10 to 20 times.
4. Increased adoption of traditional assets as a proxy for Bitcoin exposure: The latest development mirrors growing interest in using traditional assets as a proxy for Bitcoin exposure, which could lead to increased adoption of this strategy.
5. Further price growth: Bitcoin’s recent price stability above $90,000 could set the stage for further growth, with the December $100,000 strike holding the highest concentration of open interest.
