Dry opens the way to Blackrock to dominate Bitcoin ETF
The US Securities and Exchange Commission has recently introduced a key change affecting bitcoin ETF, increasing the ceiling to the number of options for optional funds in this category. According to Cryptographic Financial Services Nydig, this adjustment could provide Blackrock Ishares Bitcoin Trust (IBIT) even stronger progress on the market.
In short
- SEC is a limit to the Bitcoin ETF to 250,000, which strengthens the advantage of IBT to competitors such as FBTC.
- According to Nydig, this increase could highlight the “monstrous” IBT procedure and reduce the volatility of the price of bitcoins.
- Expanding options could attract multiple institutions in search of a stable and long -term exposure to Bitcoin.
SEC modifies the rules for bitcoin options
29. SEC approved multiplication to ten options in options. The number of authorized contracts has increased from 25,000 to 250,000. This applies to all funds negotiated on the stock market (ETF) with the above options, with the exception of Fidelity Wise Origin Bitcoin Fund (FBTC), which was not included in the extended limit.
Greg Cipolar, research manager Nydig, explained that this adjustment is likely to increase the dominant advantage of iBit on other funds. Meanwhile, this could also affect the FBTC position as the second player in the option. He said:
This change is likely to expand the monstrous backup that IBIT already has on other actors, and at the same time brakes the FBTC position as the second largest player in the possibilities.
The limits issued are preparing a way for the new Blackckock ETF extension
Bitcoin Blackrock ETF has already experienced a record growth. In June, Bitcoin Archive said Ibit exceeded $ 70 billion faster than anything ETF in history, including gold -related ones. Since August 4, in terms of monthly capital contributions, he ranked as the second best ETF, reflecting high demand.
Coinglass data shows that IBIT now has about $ 85.50 billion in managerial assets (AUM), which makes it about four times the size of FBTC, which manages about $ 21.35 billion. Increasing the limits of contracts should support further growth by allowing larger and more flexible business strategies in the fund.
Greg Cipolar has explained that the increased limit is likely to further reduce the volatility of the bitcoin price. Although his fluctuations have already disappeared, he added that bitcoins always attract traders who are trying to use prices, especially while volatility of traditional markets is still decreasing.
Extension of ETF rules could encourage cash demand and transform the market structure
The wider effect of this change of the rule could exceed business activities. Cipolaro stressed that although these strategies can slightly reduce potential revenues for sellers, they can also attract more institutional investors. The smallest price fluctuations often attract companies looking for a balanced exhibition, and the recent trend of bitcoins towards reduced volatility strengthens this attraction.
He added that as Bitcoin becomes less unpredictable, it becomes more suitable for long -term wallets focused on stable risk post. This change could attract new capital and stimulate cash demand, while more investors are looking for direct exposure through traditional markets.
The decision of July 29 was part of the wider set of approval -related approval, including:
- Approval of creating and redemption in kind to make the ETF assets transfer more faster and more efficient.
- Verification of Flex options, which allows funds to adapt the contracts according to the needs of investors.
- Opening of trading with options to the ETF and the designation of its first consent for such an activity.
- Approval of Bitwise’s request for evaluation and trading with bitcoins and Ethereum Sound ETF on regulated scholarships.
Cipolaro believes that these movements will transform the way traders interact with the ETF associated with the crypt. They see them as steps that could expand access and improve the entire market manager.
These long -awaited movements, some of the required fund sponsors since the first approval of bitcoin ETFs, are likely to have a significant impact on the market structure and investors’ approach.
Greg Cipolaro
ETF flows in cash reveal the development of trends carried by institutional activities
Despite the increase in contractual limits and increasing institutional interest, investors’ activities were mixed. According to Wu Blockchain, ETF with cash flows recorded net trips in the total amount of $ 643 million between July 28 and 1 August and ended a number of seven weeks of contributions.
In addition, Ethereum Ethereum in cash attracted $ 154 million in the same period, which meant their twelfth week in a row of positive contributions. This suggests a possible relocation of investors’ interest in Ethereum funds. However, more institutional investors to Bitcoins could increase the business capacity.
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IFOLOWA specializes in writing and marketing Web3, with more than 5 years of experience in creating bright and strategic content. In addition, it trades in crypt and is qualified in performing technical, basic and chains.
Renunciation
The words and opinions expressed in this article are involved only by their author and should not be considered investment counseling. Do your own research before any investment decision.