Bitwise executive Jeff Park is anticipating a wild ride in the crypto market following the approval of options on BlackRock’s Bitcoin exchange-traded fund (ETF) by the U.S. Securities and Exchange Commission (SEC). The SEC recently granted accelerated approval for the listing and trading of options on BlackRock’s iShares Bitcoin Trust (IBIT) ETF. According to Park, this approval represents a significant milestone for the crypto market and will unlock synthetic flows with leverage for Bitcoin. He also highlights Bitcoin’s unique volatility characteristics, including its “volatility smile.” Park explains that Bitcoin experiences both frequent melt-ups and melt-downs, which demands a risk premium on both sides of the market. This is reflected in the second order Greek called vanna. Bitcoin options have negative vanna, meaning that as the spot price of Bitcoin increases, so does its volatility, leading to a faster increase in the option’s delta. Park notes that this can result in a gamma squeeze, where dealers who are short gamma are forced to buy at higher prices, causing a recursive effect that amplifies Bitcoin’s upside potential. Unlike meme stocks, Bitcoin cannot be diluted, making it a unique asset in the financial world. Park believes that regulated markets may shut down in the face of wild market scenarios, but Bitcoin’s decentralized parallel market will continue to operate. He suggests that this will add fuel to Bitcoin’s rally. Park also predicts that options will benefit Bitcoin miners by enhancing profitability and security. He compares miners to the floor of the market, while ETF options allow for the possibility of grasping the ceiling but always missing it as Bitcoin’s price continues to rise. In conclusion, Park expects the introduction of Bitcoin ETF options to bring unimaginable excitement to the market. However, he advises investors to exercise caution and conduct thorough research before engaging in high-risk investments in Bitcoin or other digital assets. The Daily Hodl, where this article is published, does not provide investment advice and recommends that individuals take responsibility for their own transfers and trades.