THOUGHTS AROUND IBIT OPTIONS

Summary from the TLDR Crypto newsletter

This thread analyzes the approval of IBIT options in the context of existing crypto options markets. Deribit trades $40 billion notional monthly in BTC options compared to CME's $3B. Though a short squeeze is unlikely, increased derivatives volumes, volatility dampening due to structured products, and an altcoin boom could occur if crypto lending returns. The author predicts compression of basis spreads in Bitcoin futures vs spot and highlights the complex interplay between traditional finance and crypto-native markets.