Bitcoin ETF Options: 80% of Buyers Are Direct Investors, 75% Are First-Time Buyers of BlackRock's iShares Products

BlackRock ETF head Samara Cohen has told CNBC that most demand for Bitcoin comes through investment tools like ETFs, not direct purchases from crypto exchanges.

BlackRock's head of ETF highlighted the role of ETFs in driving demand for Bitcoin and the entry of first-time buyers into the crypto market.

Key Takeaways

Most demand for Bitcoin comes through investment tools like ETFs, not direct purchases from crypto exchanges.

80% of Bitcoin ETF buyers are direct investors, and 75% are first-time buyers of BlackRock's iShares products.

In the last five trading days, spot Bitcoin ETFs saw over $2.1 billion in net inflows, with BlackRock responsible for half.

Bitcoin hit its highest price since July, trading above $68,300, ending Q3 up 140% year-over-year.

After months of anticipation, the U.S. Securities and Exchange Commission (SEC) granted accelerated approval for 11 exchange-traded funds (ETFs) to list and trade options tied to spot Bitcoin prices on the New York Stock Exchange (NYSE).

This marks an important step forward for institutional investors, as Bitcoin options provide a flexible and efficient tool for hedging and amplifying exposure to Bitcoin.

The options will be available for trading on the NYSE Arca Options, subject to meeting the listing and continuing listing standards of the exchange, and are expected to be available for trading in the coming weeks.

These options offer investors a way to speculate or hedge risks related to Bitcoin’s price movements in a regulated market, with less capital required compared to trading the actual asset.

The approval comes as part of a broader effort by the SEC to increase oversight and regulation of the rapidly growing crypto market.

While the approval of Bitcoin options is a significant development, it's important to note that the listing of these options will still take some time, as they require further approval from the Commodity Futures Trading Commission (CFTC).

However, once approved, the options will provide a valuable tool for institutional investors to manage their exposure to Bitcoin in a transparent and efficient manner.

Bitcoin price surges past $68K, outperforming US equities, altcoins follow suit

Bitcoin price closed Q3 with a modest 1.00% gain, recovering after dropping below $50,000 in August, according to CCData.

As we head into Q4, market sentiment has turned bullish, supported by historical data showing an average return of 49.9% in Q4 since 2014.

This optimism is reinforced by a shift in market dynamics following the Federal Reserve's interest rate cut of 50 basis points.

The cut boosted market activity, with Bitcoin's aggregated open interest jumping 6% to nearly $27 billion.

Bitcoin's price surged past $62,000, reflecting a strong bullish response, and altcoins followed suit, outperforming U.S. equities, which saw volatile movements.

This outperformance in the crypto market suggests that liquidity injections could follow, as the rate cut often indicates macroeconomic weakness after a multi-year tightening cycle.

If further economic stimulus is required, risk-on assets like Bitcoin are expected to benefit most, with upward momentum likely to continue in the near term.

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