Spike in Bitcoin Volatility Heralds an Early Test of US ETF Demand
- Gauge of implied Bitcoin swings is at highest since FTX crisis
- Analysts are watching for any reaction in flows into US ETFs
A price chart in the window of a cryptocurrency exchange bureau in Istanbul.
Photographer: David Lombeida/BloombergThis article is for subscribers only.
Bitcoin price swings are becoming more intense following the digital asset’s run to a record high, and a key question now is how investors in US exchange-traded funds for the cryptocurrency will react.
The T3 Bitcoin Volatility Index, which uses options prices to give a sense of expected 30-day swings in the token, has jumped to the highest level since the aftermath of the collapse of Sam Bankman-Fried’s FTX exchange. The spike suggests the crypto market should brace for more Bitcoin gyrations.