BlackRock Bitcoin ETF Options to Set Stage for GME-Like 'Gamma Squeeze' Rally, Bitwise Predicts

One of the exciting developments from last week was the U.S. Securities and Exchange Commission's (SEC) nod for approval and listing of physically settled options tied to BlackRock's spot bitcoin (BTC) ETF, the iShares Bitcoin Trust (IBIT).

There is consensus that the IBIT options, which still needs to be greenlighted by the Options Clearing Corporation (OCC) and the Commodity Futures Trading Commission (CFTC), will further help draw institutions to the crypto market. The crypto community, however, seems split on how it would affect the bitcoin market volatility.

Per Bitwise Asset Management, gamma squeeze, a rapid price rally catalyzed by options market dynamics, could become a feature of the bitcoin market following the debut of IBIT options.