Bitcoin Hits Record High of $94,000 on Launch of ETF Options
Date: 2024-11-20 Author: Oliver Abernathy Categories: CRYPTO PAYMENTS
Bitcoin broke its all-time high today, reaching $94,000. This happened amid the launch of spot ETF options trading on Nasdaq, which promises to strengthen the cryptocurrency's position among institutional investors. At the time of publication, the Bitcoin rate has grown by more than 4% in a day, exceeding the previous record of $93,450 set on November 13.
In parallel, the CoinDesk 20 index, which tracks the largest cryptocurrencies, excluding stablecoins, meme coins, and exchange tokens, rose by 0.3%. Among the leaders of growth was HBAR with an increase of 9%, and POL suffered the greatest losses, falling by 0.8%.
Options give investors the ability to buy or sell an asset at a fixed price at a predetermined time. The Chicago Mercantile Exchange has previously offered options on Bitcoin, but the launch of options on spot ETFs opens up new opportunities for retail and institutional market participants.
Noelle Acheson, former head of research at Genesis, noted that the emergence of such products contributes to the development of the market. “A deep internal derivatives market will improve the level of market maturity, which will strengthen investor confidence and attract new categories of participants. It will also allow for a more diverse investment and trading strategy,” she wrote on the X social network.
Acheson also emphasized that institutional players are attracted by the flexibility and the ability to obtain high volumes. “Options provide more precise tools for implementing an investment strategy and can increase exposure to costs, which is especially important for large participants,” she added.
At the moment, only one of the eleven US spot Bitcoin ETFs, BlackRock's IBIT, offers options trading. However, demand for them was already significant on the first day.
Erik Balchunas, an analyst at Bloomberg, reported in X that IBIT options trading volume reached several hundred million dollars, which is an outstanding result for the start. He also noted that most of the trades are related to call options, reflecting expectations of further growth in the Bitcoin rate.
The launch of options on spot ETFs could be a new stage in strengthening Bitcoin's position in the financial market, attracting more investors and promoting the diversification of strategies.
