Bloomberg analysts expect a BTC ETF approval in the next few months, and clever options traders might use this strategy to profit from the possibility.
Very few events can shake the cryptocurrency markets in a sustainable manner that really sends Bitcoin and altcoin prices into a sharp directional move. One example is when Xi Jinping, China’s President, called for the development of blockchain technology throughout the country in October 2019.
The unexpected news caused a 42% pump in Bitcoin (BTC), but the movement completely faded away as investors realized China was not altering its negative stance on cryptocurrencies. 결과적으로, only a handful of tokens focused on China’s FinTech industry, blockchain tracing, and industry automation saw their prices consolidate at higher levels.
Some ‘crypto news’ and regulatory development have a lasting impact on investors’ perceptions and willingness to interact with the crypto market. Not every one of these is positive. 취하다, 예를 들면, the launch of Chicago Mercantile Exchange (CME) Bitcoin futures in Dec. 2017, which experts say popped the ‘bubble’ and led to a nearly 3-year long bear market. Despite this outcome, a positive was institutional investors finally had a regulated instrument for betting against cryptos.
Tesla’s February 2021 announcement that it had invested $1.5 billion in Bitcoin effectively changed the perception of reluctant corporate and institutional investors, and it validated the “디지털 골드” thesis. Even if the price spiked to a $65,000 all-time-high and retracted all the way to $29,000, it helped to establish a support level price-wise.
Believe it or not, investors have been expecting the United States Securities and Exchange Commission to approve a Bitcoin futures exchange-traded instrument since July 2013, when the Winklevoss brothers filed for their “Bitcoin Trust.”
Grayscale의 Bitcoin Trust (GBTC) was finally able to list it on OTC markets in March 2015, but numerous restrictions are applied to these instruments, limiting investor access.
A potentially positive price trigger is coming up
이를 염두에두고, the effective approval of a U.S. listed ETF from the SEC will likely be one of those events that will alter Bitcoin’s price forever. By expanding the field of potential buyers to the underlying asset, the event could be the trigger that drives BTC to become a multi-billion dollar asset.
Bloomberg ETF analysts Eric Balchunas and James Seyffart issued an investor note on Aug. 24 that suggested that the SEC approval could come as soon as October. Even though one could use futures contracts to leverage their long positions, they would risk being liquidated if a sudden negative price move occurs ahead of the approval.
따라서, pro traders will likely opt for an options trading strategy like the ‘Long Butterfly.’
By trading multiple call (구입) options for the same expiry date, one can achieve gains that are 3.5 잠재적 손실보다 몇 배 더 높음. The ‘long butterfly’ strategy allows a trader to profit from the upside while limiting losses.
It is important to remember that all options have a set expiry date, 결과적으로, 자산의 가격 상승은 정의된 기간 동안 발생해야 합니다..
Using call options to limit the downside
Below are the expected returns using Bitcoin options for the October 29 만료, but this methodology can also be applied using different time frames. While the costs will vary, 일반적인 효율성은 영향을 받지 않을 것입니다.
이 콜옵션은 구매자에게 자산을 취득할 수 있는 권리를 부여합니다., 그러나 계약 판매자는 (잠재적 인) 부정적인 노출. The Long Butterfly strategy requires a short position using the $70,000 콜옵션.
To initiate the execution, 투자자가 구매 1.5 Bitcoin call options with a $55,000 파업과 동시에 매도 2.3 contracts of the $70,000 요구. 거래를 완료하려면, 사람은 사야한다 0.87 BTC contracts of the $90,000 call options to avoid losses above such a level.
Derivatives exchanges price contracts in Bitcoin terms, 과 $48,942 이 전략이 인용되었을 때의 가격입니다..
The trade ensures limited downside with a possi 0.25 BTC gain
이러한 상황에서, 사이의 결과 $57,600 (쪽으로 17.7%) 과 $90,000 (쪽으로 83.9%) yields a net profit. 예를 들면, ㅏ 30% 가격 인상 $63,700 결과 0.135 BTC gain.
그 동안에, 최대 손실은 0.07 BTC if the price is below $55,000 10 월 29. 그러므로, the ‘long butterfly’ appeal is a potential gain of 3.5 times larger than the maximum loss.
사무용 겉옷, the trade yields a better risk-to-reward outcome than leveraged futures trading, especially when considering the limited downside. It certainly looks like an attractive bet for those expecting the ETF approval sometime over the next couple of months. 필요한 선불 요금은 0.07 비트코인, 최대 손실을 충당하기에 충분합니다..
여기에 표현 된 견해와 의견은 전적으로 저자 그리고 반드시 Cointelegraph의 견해를 반영하지는 않습니다.. 모든 투자 및 거래에는 위험이 수반됩니다. 결정을 내릴 때 스스로 조사해야합니다.
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