The SEC increased the options limit for ETFs from 25,000 to 250,000 contracts, significantly benefiting BlackRock’s Bitcoin ETF (IBIT) with $85.5 billion in assets. This makes IBIT far larger than its closest competitor, the Fidelity Wise Origin Bitcoin Fund (FBTC), which holds $21.35 billion.
This adjustment is expected to reduce Bitcoin’s volatility and enhance spot demand. It allows more dynamic options strategies, potentially attracting institutional investors and reshaping market dynamics, improving accessibility and competitiveness for various funds.
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