First Bitcoin (BTC) Options Expiration After ETF Approval, Uncertainty Remains
Greeks.Live reported that 36,000 Bitcoin options were about to expire as of January 12, revealing that the Put Call Ratio was 0.9, the Maxpain point was $45,000, and the notional value was $1.68 billion.
This week marked the anticipated approval of the Bitcoin Spot ETF amid repeated fake news and breaking news that have contributed to frequent and sharp fluctuations in the market. As predicted at the beginning of the week, using the LONG GAMMA strategy appeared to be cost-effective during this period.
Prior to the approval of the ETF, short-term implied volatilities (IVs) peaked, followed by a significant decline in major futures IVs as market volatility fell below expectations. While the adoption of the Bitcoin Spot ETF is likely to provide incremental capital to the crypto market in the long term, short-term uncertainty remains. Various factors at play can contribute to continued sharp volatility, similar to the swings witnessed throughout this week.
Kindness: Greeks.Live
BTC Active Wallets in Decline
Alongside Bitcoin options data, Santiment, an on-chain data provider, highlights the approval of Bitcoin ETFs, suggesting a potential trend towards a slight decline in active wallets on Bitcoin’s blockchain. The decline in the total number of active BTC wallets has been at $0,000 since the beginning of 2024.
Although this shift does not significantly impact the price of the cryptocurrency, Santiment predicts that a portion of investors may choose to adopt ETF exposure for their cryptocurrency investments from their existing BTC wallets.
Courtesy: Santiment
Investors remain unimpressed with the current Bitcoin (BTC) price as the excitement surrounding the Spot BTC Exchange Traded Fund (ETF) has not translated into significant gains.
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