Alex Thorn, head of research at Galaxy Digital, on Tuesday emphasized the transformative potential of derivatives for the Bitcoin market, particularly with the launch of options on BlackRock’s iShares Bitcoin ETF (IBIT) on Nasdaq.
What Happened: Highlighting the significant impact derivatives could have on Bitcoin (CRYPTO: BTC) liquidity and institutional participation, he said, “All other markets—commodities, equities—the derivatives markets are orders of magnitude larger than spot markets.”
“You can imagine if we get into a bull market… those options could be really impactful,” he added.
Speaking with Bloomberg, Thorn pointed out that options provide institutions with more sophisticated tools to hedge and manage risk.
Unlike futures, …
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