Analyst: Bitcoin spot ETF options may affect the demand for the underlying asset

ChainCatcher news, according to The Block, the U.S. Securities and Exchange Commission (SEC) has 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 the 'paper' supply of Bitcoin, as institutional investors can gain exposure to Bitcoin without directly purchasing it. Options on a spot Bitcoin ETF mean that the 'paper' supply of Bitcoin will increase, allowing institutional investors to gain exposure to Bitcoin by buying and selling options without investing in the spot market. They can hold long positions in Bitcoin through options without actually buying Bitcoin, or short options without first purchasing Bitcoin."

Derivatives trader Gordon Grant discussed the impact of this trend and drew an analogy with the gold market. He emphasized that while "paper" trading accounts for a significant portion of total trading volume, physical demand is still needed to support this supply. He stated, "Although paper gold trading occupies a significant share of the total daily trading volume, spot trading does as well. While the open interest in the paper market may increase significantly, at some point, the paper supply will inevitably require paper demand, which involves physical support."