Analysts Expect Increased Market Volatility After Bitcoin ETF Options Approval

The Securities and Exchange Commission (SEC) has approved options trading on a number of bitcoin spot ETFs, which analysts expect to increase market volatility for bitcoin.Kbit CEO Ed Tolson believes retail investors will use bitcoin ETF options for speculation, potentially amplifying price swings. While Galaxy Digital's Michael Harvey noted that while volatility may rise in the short term, it may diminish in the long term as institutions adopt income strategies.The SEC also set a cap of 25,000 contracts on options positions to reduce the risk of market manipulation.