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Options on ETFs will result in the god candles we've all been waiting for. Prepare accordingly.

Bitcoin Reddit

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Market makers will offer options to buy or sell Bitcoin ETFs at a certain price.

The market makers must hedge their positions so they don't get rekt with volatile price action. When someone buys a call option, the market maker will also buy some amount of the ETF and/or BTC to protect themselves from losing a ton of money in an upward swing.

Bitcoin's scarcity will result in spot prices going up because of increased buy demand from the market makers. This turns into a feedback loop called a gamma squeeze, which can result in ridiculous explosions in price.

Of course, the opposite effect can occur on the downside, called a reverse gamma squeeze, or delta unwind. It can result in rapid crashes in price.

But on the whole, as a scarce asset, the upside potential will be far greater.

This is like adding pure rocket fuel. Get ready.

submitted by /u/eyedude2898
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