Markets Rally as Bitcoin ETF Options Go Live

The cryptocurrency market surged on Tuesday as excitement around spot Bitcoin exchange-traded funds (ETFs) options fueled investor sentiment.

Bitcoin (BTC) climbed 3.5% in the past 24 hours to a fresh all-time high of $93,900. Ethereum (ETH) was flat, while Solana (SOL) rose 3%, pushing the global cryptocurrency market cap up 1% to $3.27 trillion. Notably, Solana broke above $240 for the first time in three years.

The rally comes on the heels of the Commodity Futures Trading Commission (CFTC) clearing the way for the Options Clearing Corporation (OCC) to launch spot Bitcoin ETF options.

Alison Hennessy, Nasdaq’s Director of ETFs, confirmed the exchange’s readiness to list options for BlackRock’s iShares Bitcoin Trust (IBIT), a $43 billion fund.

“This development is poised to attract a new wave of institutional investors who face restrictions on accessing native crypto options markets like Deribit. These investors are likely to focus on generating yield on their long-term spot ETF holdings, potentially leading to further compression of implied volatility,” wrote analysts from QCP Capital, a digital asset trading firm.

Shifts in Safe Haven Assets Amid Economic Uncertainty

While crypto rallies, gold remains under pressure.

Gold prices, which recently printed their largest negative weekly candle in over a year, are hovering below $2,600 despite a sharp 23% rebound to $2,588.74.

Economic policies under president-elect Donald Trump could further shift investor sentiment, per analysts.

“With President Donald Trump set to take office in January, the appeal of gold might shift considerably in the coming months. As it stands, the incoming President has teased the plans to focus on three unique economic pillars,” said Maruf Yusupov, co-founder of Deenar. “These include taxes, tariffs, and crypto. Despite its century-old relevance, the focus on Bitcoin might stem the dominance of gold as a hedge against inflation moving forward. This implies that investors might shift funds from gold to Bitcoin, fueling a rapid rally for the latter.”

Meanwhile, spot Bitcoin ETFs logged $255 million in net inflows on Nov. 18, reversing a two-day outflow streak that had drained $770.77 million from the funds.

According to Farside Investors data, BlackRock’s IBIT led the pack with $89.33 million in inflows, followed by Fidelity’s FBTC with $59.95 million and Grayscale’s Bitcoin Mini Trust at $54.39 million.