CBOE Digital president says a spot bitcoin ETF approval will promote derivatives growth

CBOE Digital President John Palmer believes that the approval of a spot bitcoin ETF could have a positive impact on the derivatives market. He stated that the approval would open up opportunities for both institutional and retail investors to invest in a spot bitcoin ETF, which is currently not possible. According to Palmer, this broader access to a spot bitcoin ETF could lead to increased interest in derivatives such as options and futures contracts, as institutions would want to hedge their risks. He also mentioned that while institutions would lead the way in utilizing the hedging tools provided by a spot bitcoin ETF, retail investors would also be interested in participating. Overall, Palmer sees the approval of a spot bitcoin ETF as a catalyst for the growth of the cryptocurrency ecosystem, benefiting both institutions and retail investors. The US Securities and Exchange Commission is expected to make a decision on potential spot bitcoin ETFs by January 10th.