QCP Capital expects new institutional influx as Nasdaq debuts Bitcoin ETF options

BlackRock’s first Bitcoin ETF options on Nasdaq will bring a new “wave” of institutional investors to the crypto market, QCP Capital analysts say.

Analysts at Singapore-based trading firm QCP Capital say options on the iShares Bitcoin Trust could attract a new “wave” of institutional investors looking to generate returns on long-term spot ETF holdings.

In a Nov. 19 blog post, analysts say the introduction of IBIT options could trigger an influx of high-net-worth investors and potentially lead to “further compression of implied volatility.”

“This development is poised to attract a new wave of institutional investors, such as Deribit, who face restrictions in accessing local crypto options markets.”

QCP Capital

QCP Capital described the Nasdaq listing as a “turning point” for the Bitcoin (BTC) derivatives market, highlighting that derivatives often grow to exceed the size of underlying assets by 10 to 20 times.

Bitcoin seeks foundation for further growth

Analysts note that the latest development reflects growing interest in using traditional assets as a proxy for exposure to Bitcoin, with MicroStrategy seeing an increase in the number of institutional holders in the third quarter. Recent filings showed Vanguard increasing its stake in MicroStrategy by 1,000%, underscoring increased institutional activity in Bitcoin-related investments.

Analysts stated that Bitcoin’s recent price stability above $90,000 could pave the way for further growth, pointing out that the $100,000 strike in December contained the “highest concentration of open interest.” As of the moment the article was published, Bitcoin is trading at $92,335, gaining momentum in both spot and derivative markets.