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Expect Two Major Triggers for Bitcoin ETFs by Year End, Claims ETF Specialist

Or even worse: a philosoraptor?

by Ravikash March 13, 2024, 6:37 pm 1.7k Views 2 Votes

Key Points

Bitcoin ETFs are expected to experience two significant catalysts by year’s end.
These catalysts include wider accessibility and the launch of options trading for Bitcoin ETFs.

Bitcoin exchange-traded funds (ETFs) are predicted to encounter two substantial catalysts before the close of this year. This prediction comes as they are set to become available to a broader range of investors across various platforms.

Increased Accessibility

The first catalyst is anticipated to be the increased accessibility of these ETFs to the core of the advisory world. As per the current knowledge, these ETFs do not have a presence on any significant wirehouse platforms, which manage between $7 trillion and $10 trillion in assets.

These ETFs are expected to land on these platforms within the coming months. The increased exposure and availability akin to a product being placed on the shelf of a large food store will only aid in their growth.

In addition to wirehouses, other large investment platforms like Raymond James and LPL could potentially broaden the access to ETFs. It is also anticipated that many smaller platforms could follow the same pattern.

Options Trading for Bitcoin ETFs

The second catalyst is projected to be the introduction of options trading for Bitcoin ETFs. It is estimated that options based on the ETFs will be available by September.

These are considered two significant catalysts yet to occur. Not to mention the halvening, which could lead to a price jump. The fact that these have performed well without solicitation, without the major platforms, and without options is a minor miracle.

Beyond options, it is likely that banks will create structured products around the ETFs, similar to what was done with Ark Invest. Another instrument could be the 2X spot Bitcoin ETFs, where swaps are packaged inside the ETFs. It is suggested that one or two of these leveraged ETFs will likely gain substantial traction.

Following this, it is speculated that covered call strategies would be implemented, along with products such as long Bitcoin/short gold. It is expected that various experiments will yield a few successful results. These successes will all contribute to the ecosystem.

It is certain that there will be all kinds of structures and package trades that formulate around the core ten Bitcoin ETFs that we see today.