According to the Wise Finance APP, bullish cryptocurrency investors expect that if bitcoin etf options are approved, it will enable institutional investors to implement more trading strategies, some of which may lead to a significant increase in bitcoin prices.

Investors closely watch whether and when the Options Clearing Corp. and the Commodity Futures Trading Commission in the USA approve the options for iShares Bitcoin Trust ETF. Prior to this, the U.S. Securities and Exchange Commission (SEC) had approved Nasdaq's application to list such products last month.

Although there are already many unregulated or completely unregulated cryptocurrency options products in the market, some institutions are reluctant to participate in trading due to compliance requirements.

Eliézer Ndinga, Head of digital asset strategies and business development at 21Shares, stated that if bitcoin etf options are approved, it will allow more institutional investors to utilize these tools to execute different strategies. For example, investors will be able to implement covered call option strategies, in which investors holding a certain asset sell call options on that asset to generate income.

Call options give contract holders the right to buy the underlying asset at a specified price before the expiration date, without the obligation to purchase.

Meanwhile, if bitcoin etf options are introduced, investors may anticipate what is known as a 'gamma squeeze.' This phenomenon typically occurs when an asset is heavily bought in the short term. When institutions sell these call options, they need to buy the underlying asset to hedge their positions. As asset prices rise, they have to buy more to maintain the hedge, further driving up asset prices.

In 2021, the surge of Gamestop (GME.USA) is the result of gamma squeeze.

Bitwise Asset Management's institutional strategy head Jeff Park stated that the impact of gamma squeeze on Bitcoin may be more profound than on traditional assets. He pointed out that traditional assets such as stocks and bonds have a valuation framework, which does not apply to Bitcoin. Park explained: "Technically, stocks cannot be squeezed indefinitely because at some point, companies will issue new shares, or shorts will enter the market and push prices back to reasonable levels. But Bitcoin does not have these dynamics, meaning Bitcoin's upward potential is almost unlimited."

Nevertheless, Park stated that it is still uncertain how popular it will be to use Bitcoin ETF options for covered call strategies. He noted that in the current cryptocurrency options market, very few cryptocurrency whales actually profit by selling covered calls.

Darius Tabai, CEO of the decentralized exchange Vertex, believes that the likelihood of significant gamma squeeze occurring in Bitcoin is low. He explained that the reason this phenomenon occurs in "MEME stocks" like Gamestop is because these stocks do not have futures contracts, making it difficult to short them. However, Bitcoin's futures market is very mature, making it easy to short, less likely to be squeezed out, which breaks the logic of gamma squeeze.