BlockBeats news, on September 27, according to The Block, the U.S. Securities and Exchange Commission (SEC) recently approved BlackRock to list and trade its spot Bitcoin options. CryptoQuant analysts pointed out that “the launch of options on the IBIT ETF may increase Bitcoin’s “paper” supply, as institutional investors can gain exposure to Bitcoin without purchasing Bitcoin directly. Options on spot Bitcoin ETFs mean that the “paper” supply of Bitcoin will increase, and institutional investors can gain exposure to Bitcoin by buying and selling options without having to invest through the spot market. They can take a long position in Bitcoin through options without actually buying Bitcoin, or short options without buying Bitcoin first. “
Derivatives trader Gordon Grant discussed the impact of this trend and compared it to the gold market. He emphasized that although “paper” transactions accounted for a large portion of the total transaction volume, physical demand was still needed to support this supply. He also stated that “Although paper gold trading accounts for a significant share of the total average daily trading volume, the same is true for spot trading. Although the open interest in the paper market may increase significantly, at some point, paper supply will inevitably require paper Faced with demand, this involves physical support.”