CandleFocus

Major takeaways from this week’s BTC ETF options launch

Author: Content Editor
The main takeaways from the interview with Jeff Park, head of alpha strategies at Bitwise Asset Management, regarding the launch of BTC ETF options are as follows: 1. Crypto has a persistent smile to its volatility surface, where calls are equally as juiced as puts, creating a unique volatility structure. 2. Most of the options activity has been in out-of-the-money calls, with 82% of the first day options volume being from calls. 3. Deribit, a crypto options exchange that is open 24/7, should have BTC options priced differently from the ETF options due to the constant trading availability and theta. 4. BlackRock's iShares Bitcoin Trust (IBIT) has the majority of notional exposure among all the ETFs, leading to wider spreads on the other ETFs. 5. The launch of ETF options has significantly changed the market structure, with options flow dynamics becoming more important for short-term market dynamics.

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