Bitcoin, ether ETFs to become more powerful as options rule relaxes

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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.

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