Income ETFs could be bitcoin’s volatility kill switch
CoinDesk·1d ago·Neutral
What Happened
Goldman Sachs and BlackRock are developing Bitcoin Premium Income ETFs that sell options to generate returns while reducing cryptocurrency price swings. These products use covered options strategies where dealers hedge positions by buying on declines and selling on rallies, restraining volatility. Bitcoin's implied volatility has declined for three years due to growing options-selling popularity. Bitcoin currently trades near $74,000 after reaching $76,000 Tuesday.
Key Entities
Goldman SachsBlackRockBitcoin ETFOptions sellingVolatility reductionCoinDesk