Galaxy Digital: Expects active trading of Bitcoin options to continue until January 2027
Powered by ChatGPTOdaily Planet Daily reports that the trading team at Galaxy Digital stated that the BlackRock IBIT ETF options debuted successfully, with 353,716 contracts traded on the first day. Galaxy believes that trading activity will continue until January 2027, roughly half the duration of Trump’s presidency.
They explained: "This concentrated level of long-term activity reflects investors' confidence in the long-term growth potential of the ETF, indicating bullish sentiment in the coming years."
So far, offshore cryptocurrency-native platforms like Binance and Deribit have been the primary markets for Bitcoin derivatives trading. Galaxy indicated that there is a significant volatility premium between Deribit, CME, and IBIT, which may provide arbitrage opportunities for different platforms offering derivatives trading.
On Friday, over 9 billion dollars worth of Bitcoin options contracts were set to expire on Deribit, which could lead to increased price volatility as the expiration date approaches.
Mike Novogratz, CEO of Galaxy Digital, stated: "There is a substantial amount of leverage in the system right now, with funding rates for futures contracts remaining high, and the crypto community has pushed itself to the limit, which will lead to adjustments."