Source: CryptoNewsNet
Original Title: Bitcoin, ether ETFs to become more powerful as options rule relaxes: Crypto Daybook Americas
Original Link:
The U.S.-listed bitcoin and ether exchange-traded funds (ETFs) that have sucked in billions in institutional money, smoothing out the once-crazy volatility in these tokens, are about to get more powerful.
Trading in options, handy hedging tools tied to the ETFs, is no longer capped by a rule limiting any single participant to no more than 25,000 contracts. The regulatory change was filed on Jan. 7 and went live this week.
Options allow traders to bet on the future price of an asset at a minimal initial cost. For a small fee, they are able to lock in a BTC purchase at a specific price and capitalize on future gains. Put options work in the opposite direction, representing a bailout pass to sell at today’s price if the asset plummets in future.
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
Bitcoin, ether ETFs to become more powerful as options rule relaxes
Source: CryptoNewsNet Original Title: Bitcoin, ether ETFs to become more powerful as options rule relaxes: Crypto Daybook Americas Original Link: The U.S.-listed bitcoin and ether exchange-traded funds (ETFs) that have sucked in billions in institutional money, smoothing out the once-crazy volatility in these tokens, are about to get more powerful.
Trading in options, handy hedging tools tied to the ETFs, is no longer capped by a rule limiting any single participant to no more than 25,000 contracts. The regulatory change was filed on Jan. 7 and went live this week.
Options allow traders to bet on the future price of an asset at a minimal initial cost. For a small fee, they are able to lock in a BTC purchase at a specific price and capitalize on future gains. Put options work in the opposite direction, representing a bailout pass to sell at today’s price if the asset plummets in future.