Bitcoin Options Trading Is Here: What Effect Will That Have on Bitcoin’s Price?Ryan Tucker
Only two years ago Bitcoin futures trading was introduced for the first time, coinciding with a massive increase in interest in Bitcoin. The Bitcoin price pushed near $20,000 as investors, traders, and speculators piled into the market. While the price has come down since then, interest in Bitcoin remains, with more and more first-time Bitcoin buyers piling into the market. Now that Bitcoin options trading is just around the corner, what effect might that have on Bitcoin’s price?
Just like with Bitcoin futures, Bitcoin options will see two competitors entering the market. CME Group is by far the larger of the two, and is a well-established futures and options exchange. Bakkt is the other, and it actually will scoop CME by a few months. Bakkt is set to start offering Bitcoin futures trading today, while CME is hoping to jump into the market at some point in the first quarter of 2020.
The fact that Bitcoin traders will have yet another option available to them to trade Bitcoin should help continue to boost Bitcoin’s appeal to mainstream investors and to the financial services industry. Bitcoin IRA investors have long known about the benefits Bitcoin can add as part of a retirement savings portfolio, and Bitcoin’s numerous advantages are made more and more clear every day.
A decade after its introduction, Bitcoin continues to make great strides in breaking into the financial mainstream, with government regulation being about the only obstacle in its path. With futures and options trading now set, it’s up to the Securities and Exchange Commission (SEC) to get on the ball with regard to regulatory approval for Bitcoin exchange-traded funds (ETFs).
It’s only a matter of time before a Bitcoin ETF gains approval, which will even further cement Bitcoin’s ascendance into the financial mainstream. That will really spur adoption by mainstream investors, and the ensuing interest should really boost Bitcoin’s price. All the naysayers who thought Bitcoin was dead or in a bubble will be eating their words in a few years as Bitcoin establishes itself as a major alternative investment asset.