Bitcoin derivatives market has huge potential? VanEck executive: 279 times that of traditional finance

The SEC approved a Bitcoin spot ETF earlier this year and in September, they also approved the listing and trading of the BlackRock Bitcoin spot ETF options. This move not only increases traditional financial instruments' exposure to Bitcoin but also demonstrates the gradual acceptance of Bitcoin in mainstream society. As for the market potential of Bitcoin derivatives, Matthew Sigel, Head of Digital Assets Research at VanEck, gave a surprising answer. Bloomberg analyst Eric Balchunas even predicts that the SEC will approve other Bitcoin spot ETF options in the near future.

U.S. SEC Approves BlackRock Bitcoin Spot ETF Options for Listing on Nasdaq

Bitcoin Has 279 Times Less Derivatives Market Size Compared to Traditional Finance

Earlier, Matthew Sigel, Director of Digital Asset Research at asset management company VanEck, elaborated on the significant growth potential of the Bitcoin derivatives market on Twitter. His chart compares the "Derivatives Market Size: Market Size" ratio of different underlyings in the "Stocks and Commodities Market" with the "Bitcoin Market."

According to the data, in the Stocks and Commodities Market, the size of derivatives is 12 times the underlying. In the Bitcoin market, the size of the derivatives market is only 0.043 times the size of the underlying market.

This shows a significant difference between the two. Based on his comparative data, the size of derivatives in Stocks and Commodities is 279 times that of Bitcoin, which also reflects his view that he sees huge potential in the Bitcoin derivatives market.

Matthew Sigel said, "With the approval of IBIT options, the potential for Bitcoin to catch up is huge. The Bitcoin derivatives market is just getting started."

Analysts Predict SEC Will Approve Remaining Bitcoin Spot Options

Matthew Sigel explains from the perspective of derivatives and underlying that the Bitcoin derivatives market is still in its early stages, which is also evident from the progress of regulatory approvals. Bloomberg analyst Eric Balchunas stated on Twitter that SEC approval does not mean the product can be listed immediately; it still needs approval from the Commodity Futures Trading Commission and the Commodity Futures Trading Commission, both of which are not required to make a decision by a specific deadline.

However, he also affirmed that the SEC's attitude is a significant step forward and indicated that other Bitcoin spot options are likely to be approved in the near future.

What impact does SEC approval of IBIT options have on Bitcoin?