Reflexivity squared: How Bitcoin ETF options could lead to explosive price movements.
Opinion by Mehdi Lebbar, co-founder of Exponential.fi.
Bitcoin (BTC) is the world’s most reflexive asset today. The United States Securities and Exchange Commission recently approved options for several Bitcoin exchange-traded funds (ETFs). Once issued, these options lead to gamma squeezes, acting like reflexivity. Together, that’s reflexivity squared, leading to unprecedented price movements.
The launch of spot Bitcoin ETFs was already a landmark event for the financial world. In their first month, BlackRock’s and Fidelity’s Bitcoin ETFs attracted unprecedented inflows, each accumulating $3 billion — setting records for ETF launches.
