SEC Raises Bitcoin ETF Options Limits to Reduce Volatility and Increase Demand

Bitcoin's volatility may be shifting due to actions by the SEC. Key points include:

The SEC raised position limits on options for most bitcoin ETFs.
This change encourages strategies like covered call selling, which can stabilize price movements.
Traders can now hold ten times more contracts than before, increasing options activity.
Covered call strategies generate yield while suppressing price fluctuations across large portfolios.
Bitcoin's volatility has decreased, with the Deribit BTC Volatility Index dropping from 90 to 38 over four years.
Lower volatility may make Bitcoin more appealing to institutional investors seeking stable exposure.
Ray Dalio recommended a 15% allocation to gold and crypto amid rising U.S. debt levels.
Falling volatility could lead to increased spot buying and sustained demand for Bitcoin.