Bitwise Strategy Director: Approval of Bitcoin Spot ETF Options Will Lead to Explosive Price Rise

According to BlockBeats, on September 21st, Jeff Park, the head of strategy at Bitwise Alpha, posted a lengthy article on social media stating that the SEC's approval of BlackRock's Bitcoin spot ETF options trading will lead to an explosive rise in Bitcoin. The brief content includes: Jeff Park believes that the market is about to witness the most incredible rise in "volatility" in financial history, which should be more fully explained. The contributing factors include several characteristics of Bitcoin, the nature of the regulated options market, and the strong combination of the two. It believes that the SEC's approval of BlackRock's Bitcoin spot ETF options trading marks the biggest possible progress in the cryptocurrency market. The nominal value of Bitcoin will be partially banked through ETF options for the first time. Although the limited non custodial supply of Bitcoin is its biggest advantage, it is also a drag that limits the ability to create synthetic leverage. Now, Bitcoin will have a regulated market for the first time, and the US Commodity Futures Trading Commission will protect clearing members from peer risks. This means that the synthetic nominal exposure of Bitcoin can grow exponentially. In addition, Bitcoin also has unique volatility characteristics, and when the spot price rises, the volatility also increases, which means that the delta increases faster. When traders short Gamma engage in hedging (Gamma Run), the situation of Bitcoin will experience explosive recursion. Short traders will be forced to continue buying at higher prices, and more buying will lead to more increases. Negative Gamma Run will cause Bitcoin prices to rise like rockets. In summary, the Bitcoin ETF options market is the first time the financial world has seen regulatory leverage on a truly supply constrained permanent commodity. Things may become so crazy that regulated markets may be forced to close. But the extraordinary thing about Bitcoin is that there will always be a parallel, decentralized market that cannot be closed, unlike stocks.