Consorti stated the importance of options trading, especially for institutional investors. He explained that in sectors like equities and commodities, derivatives are 10 to 20 times the size of the underlying market cap.

On the other hand, Bitcoin’s derivatives market was much lower, with its total Open interest, or OI, being a fraction of its spot market capitalization.

See Also: Bitfinex Bitcoin Laundering Case Lands ‘Crocodile Of Wall Street’ In Jail

“So Bitcoins are vastly underdeveloped, and this limits the market majority because there is a huge institutional demand for these vehicles from a hedging perspective and an allocation perspective,” Consorti said.

With the debut of options trading, the analyst expected Bitcoin’s derivatives market to balloon into something “much, much larger.”

Why It Matters: Retail investors, who constitute nearly 44% of the listed equities options market, had trouble accessing Bitcoin ETF options due to the OTC (over-the-counter) nature of trading on platforms like Deribit.

However, all this changes with IBIT options, as investors previously excluded would be able to join the Bitcoin derivatives market, giving a boost to the investor base and demand.

“A robust derivatives ecosystem reduces volatility, improves price discovery, and allows institutional capital to engage with Bitcoin at scale,” Consorti emphasized. 

The IBIT spot ETF was the biggest Bitcoin-related fund, according to SoSo Value, with assets worth more than $43 billion as of this writing.

Price Action: At the time of writing, Bitcoin was trading at $91,727.36, up 0.08% in the last 24 hours, according to data from Benzinga Pro.

What’s Next: The launch coincides with Benzinga’s Future of Digital Assets event on Nov. 19, where the focus will be on Bitcoin’s role in institutional portfolios, regulatory clarity, and the evolving crypto market landscape.

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