August 3, 2025
Higher Bitcoin Etf Options Limits May Cut Volatility, But Boost Spot Demand: Nydig thumbnail
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Higher Bitcoin Etf Options Limits May Cut Volatility, But Boost Spot Demand: Nydig

Bitcoin’s volatility have been Deckling But Remains Higher than Traditional Assets, Making It Attractive for Income Generation But Risky for Institutions Seneking Stability.”, – WRITE: www.coindesk.com

Bitcoin’s volatility have been Deckling But Remains Higher than Traditional Assets, Making It Attractive for Income Generation But Risky for Institutions Seneking Stability. AUG 3, 2025, 8:00 PM

Bitcoin’s Trademark Valativity May Be Entering a New Phase Thanks to the Securities and Exchange Commission (SEC).

The agent’s Decision to Raise Position Limits on Opions for MOST BITCOIN ETFS COURCK Income, accounting to nydig Research.

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That increase in position limits for options trading on ibit camp as the regulator Approved in-Kind Redemptions for Spot Bitcoin Etfs.

By Letting Traders Hold Ten Times More Contracts Than Before, Nydig Wrote, The Sec Has Orated the Door to More Aggressive and Sustaned Options Activity. Covered Call Strategies, In Particular, Work Best at Scale.

They Designed to Earn Yeld from Existation Holdings by Selling Upside Exposure, Which Can Naturaly Supppress Price Movement If Done Across Large Portfolios.

Bitcoin’s volatility have already been on the declin, with Deribit’s BTC volatility Index (DVOL) Showing A Steady Decline from ARound 90 to 38 Over The Past Four Years.

Still, It Stands Out Compared to Bonds, Stocks, and Other Traditional Assets. That makees it a tempting Target for Investors Trying to Collect Income from Market Swings, Effectvely Harvesting Volatility, But Also Risky for Institutions that Require Stable.

“As volatility Declines, The Asset Becomes More Investable for Institutional Portfolios Seneking BalanCed Risk Exposure. This Dynamic Could ReinForce Spot Demand,” Nydig’s Analysts Wrote.

Ray Dalio, One of the Earliest Champions of Such Risk-Parity Strategies, Recently Suggested A 15% Alloction to Gold and Crypto Amid Rising Debt Levels.

“The Feedback Loop of Falling Volatility Leading to Increated Spot Buying Could Become a Powerful Driver of Sustaned Demand,“ The FIRM CONCLUDED.

Read More: Wall Street Has Claiimed Bitcoin – Now What?

Francisco Rodrigues

Francisco is a reporter for coindesk with a passion for Cryptocurrencies and Personal Finance. Before joining coindesk he worked at Major Financial and Crypto Publications. He OWNS BITCOIN, Ether, Solana, and Paxg Above Coindesk’s $ 1,000 Disclosure Thrasld.

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Francisco Rodrigues

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