Hedera’s native cryptocurrency, HBAR, has seen a 4.7% price increase over the past 24 hours after replacing Polkadot (DOT) in the Grayscale Smart Contract Platform Fund (GSC Fund). The fund consists of the industry’s top smart contract platforms.
This move has significantly boosted the token’s visibility, sparking optimism among investors and highlighting growing confidence in Hedera’s prospects.
“Grayscale has adjusted GSC Fund’s portfolio by selling Polkadot (DOT) and existing Fund Components in proportion to their respective weightings,” the statement read.
The proceeds from the sales were reinvested into HBAR and other assets in the fund, again based on their proportional weight. HBAR now makes up 5.80% of the GSC fund.
Meanwhile, Ethereum (ETH) and Solana (SOL) remain the fund’s dominant assets, accounting for almost 60% of the total holdings. ETH has 30.22% weight in the fund, while SOL accounts for 29.87%.
Notably, the inclusion added further momentum to HBAR’s latest recovery rally. BeInCrypto data showed that the altcoin gained 10.7% over the past week after experiencing a two-month-long downtrend.
At the time of writing, HBAR’s trading price was $0.16. This represented gains of 4.7% over the past day alone.
Besides price, Grayscale’s move has also impacted HBAR’s visibility. According to CoinMarketCap, HBAR has emerged as the most visited real-world asset (RWA) cryptocurrency on the platform, reflecting growing investor interest.
Additionally, Google Trends data revealed that search interest for ‘HBAR’ peaked at 100 today, signaling heightened public curiosity.
Meanwhile, Metal Pay today announced that HBAR is now available on its platform. Metal Pay allows users to buy, sell, and trade cryptocurrencies. Thus, HBAR’s inclusion further increases its accessibility.
That’s not all. HBAR may benefit even further from upcoming developments. The altcoin will launch on Kraken Exchange on July 10. This could likely provide additional exposure and liquidity for the token, possibly driving further interest and adoption.
Industry figures have also endorsed HBAR’s potential. Businessman and investor Kevin O’Leary recently expressed confidence in HBAR and even disclosed that he holds the asset.
“I think HBAR is going to be big, I really do,” he said in an interview.
With these developments, HBAR’s future looks promising. However, while the current momentum paints a bullish picture, how the altcoin will actually perform in the coming time remains to be determined.
BlackRock’s Bitcoin ETF is in the top 1% of performers in this category despite tariff chaos. Analysts theorize that the issuers are stabilizing Bitcoin’s volatility, and the ETF market will make BTC more secure in the future.
The issuers act as major whales, buying up any token dumps from retail investors. However, this new stability is entirely contingent on these powerful firms, which are exposed to broader macroeconomic concerns.
Are the ETFs Stabilizing Bitcoin?
The threat of Trump’s tariffs has brought chaos and uncertainty into global markets, but the price of Bitcoin has been relatively fine. Although it has fallen from its all-time high in January, its price shelf is still well above its performance before the November election.
According to one analyst, the ETFs may be providing Bitcoin with this extra stability:
“Bitcoin ETFs have eked out positive inflows past month and YTD and IBIT is +2.4 billion YTD (Top 1%). Impressivem and in my opinion, helps explain why BTC’s price has been relatively stable: its owners are more stable. ETF investors are much stronger hands than most think. This should increase stability and lower volatility and correlation long term,” claimed Eric Balchunas.
Since the Bitcoin ETFs first hit the market, they’ve totally transformed the crypto industry, but it’s been difficult to quantify that transformation.
However, this impending economic crisis has given analysts a useful chance to collect hard data from a stress test. Balchunas emphasized that ETF issuers had a powerful demand for BTC, which has powered some changes.
Weekly Bitcoin ETF Inflow in 2025. Source: SoSoValue
Bitcoin is more integrated than ever into traditional finance, and that presents a few opportunities. For any number of reasons, retailers have been compelled to dump their tokens.
Normally, these actions could spook the markets, but ETF issuers (and Michael Saylor’s Strategy) have been willing to buy as much Bitcoin as possible.
In other words, these whales have done a lot to hold up confidence in the entire market. Ideally, ETF issuers will have a mostly positive impact on the sector, potentially curing Bitcoin’s infamous chronic volatility.
The ETF issuers have a high confidence in Bitcoin, which has kept its price steady throughout the tariff chaos. If they lose that confidence for any reason, it could cause a powerful demand crisis.
This investment trend has been a tremendous benefit to the crypto industry, but it’s important to keep an eye on the potential risks involved.
Singapore is cracking down on crypto exchanges, while Hong Kong unveiled a new legal framework to encourage investment. Hong Kong may have an opportunity to attract crypto investment from across the region.
China is also liquidating seized assets, potentially giving Hong Kong-based firms an opportunity to buy these products cheaply. Still, Singapore is continuing to issue some exchange licenses, and fears of capital flight may be overblown.
Its new, tougher guidelines took effect this week, possibly creating obstacles to the nation’s industry. However, Hong Kong could be poised to take Singapore’s place as a regional crypto hub.
However, the city could benefit from a few recent developments. Hong Kong passed new stablecoin laws while China is liquidating seized tokens, potentially creating a window for firms to acquire new assets:
“These moves are intimately connected, forming a strategic blueprint that could redefine Hong Kong’s role in the global virtual asset ecosystem. This is likely to attract quality projects looking for a compliant, liquid, and globally connected base,” Joshua Chu, a lawyer and co-chair of the Hong Kong Web3 Association, told local media.
Singapore’s new regulation aims to severely crack down on unregistered exchanges and make the licensing process more difficult.
Last week, Hong Kong unveiled its new LEAP framework, explicitly aimed at encouraging crypto investment. If these two cities both continue their ongoing trends, a realignment seems plausible.
Still, there are many contingent factors, and this move is by no means guaranteed. Singapore may have stricter licensing requirements, but it is nonetheless approving some requests.
Earlier this week, Robinhood’s BitStamp platform announced that it obtained such a license under the new rules. Major firms are still making fresh expansions into Singapore.
In short, a lot of things are still up in the air. Hong Kong may take some of Singapore’s market share, but this switch might never materialize. Ideally, both cities will remain regional crypto hubs, each contributing to the global ecosystem.
Ethereum reached a notable milestone earlier this month when the US Securities and Exchange Commission (SEC) approved options trading for several spot exchange-traded funds (ETFs). The move is expected to increase liquidity, attract interest from institutional investors, and solidify Ethereum’s position as a major cryptocurrency.
Yet Ethereum’s smaller market cap relative to Bitcoin means it is also vulnerable to gamma squeezes, thereby increasing investor risks. BeInCrypto consulted an expert in derivatives trading and representatives from FalconX, BingX, Komodo Platform, and Gravity to analyze the potential impact of this new characteristic.
This week marked the official debut of options trading for spot Ethereum ETFs in the United States. BlackRock’s iShares Ethereum Trust (ETHA) was the first to list options, with trading commencing on the Nasdaq ISE.
Shortly after, a broader availability of options followed, including those for the Grayscale Ethereum Trust (ETHE) and the Grayscale Ethereum Mini Trust (ETH), as well as the Bitwise Ethereum ETF (ETHW), all of which began trading on the Cboe BZX exchange.
This move allows a wider range of investors, beyond crypto traders, to benefit from hedging and speculation opportunities on Ethereum’s price through options on familiar investment vehicles like ETFs without direct ownership.
The timing of this news is particularly positive, as Ethereum has been losing some ground in the market lately.
Options Trading to Bolster Ethereum’s Market Position
A significant decline in market confidence surrounded Ethereum this week, with BeInCrypto reporting its price had plummeted to its lowest point since March 2023. This drop coincided with a broader market downturn, worsened by Donald Trump’s Liberation Day.
Meanwhile, large Ethereum holders are increasingly selling off substantial amounts, putting downward pressure on their prices. Ethereum’s value has fallen sharply by 51.3% since the beginning of 2025, and investor confidence has waned, as evidenced by a decrease in addresses holding at least $1 million in ETH.
Holders with at least $1 million worth of ETH. Source: Glassnode.
With options trading now accessible to more traders, experts anticipate that Ethereum’s market position will improve.
“ETH’s been leaking dominance, stuck sub-17%. Options give it institutional gravity. It becomes more programmable for fund strategies. More tools mean more use cases, which then in turn means more capital sticking around,” Martins Benkitis, CEO and Co-Founder of Gravity Team, predicted.
This newfound accessibility of options trading will create additional opportunities for investors and the broader Ethereum ecosystem.
Greater Investor Access and Liquidity
The SEC’s approval of Ethereum ETFs in July 2024 was significant because it allowed traditional investors to enter the crypto market without directly holding the assets. Now, with options trading also available, these benefits are expected to be even greater.
The Ethereum ETF market will naturally become more liquid with increased participation through options trading.
High Trading Volumes and Hedging Demands
The SEC’s fresh approval of options trading for Ethereum ETF investors suggests that the market will likely initially experience a high trading volume. As a result, market makers must be prepared.
An increase in call options will require institutional market makers to hedge by buying more Ethereum to meet demand.
Ethereum will also secure a unique advantage, particularly in institutional trading, enhancing its perceived quality and driving optimism among key market participants.
“ETH just got a serious institutional tailwind. With options now in play, Ether is stepping closer to BTC in terms of tradable instruments. This levels up ETH’s legitimacy and utility in hedging strategies, narrowing the gap on Bitcoin’s dominance narrative,” Benkitis told BeInCrypto.
Yet, rapid surges in options trading could also have unintended consequences on Ethereum’s price, especially in the short run.
Will Investors Suffer a Gamma Squeeze?
As market makers rush to acquire more of the underlying asset in case of a higher volume of options calls, Ethereum’s price will naturally increase. This situation could lead to a pronounced gamma squeeze.
When market makers hedge their positions in this scenario, the resulting buying pressure would create a positive feedback loop. Retail investors will feel more inclined to join in, hoping to profit from Ethereum’s rising price.
The implications of this scenario are especially pronounced for Ethereum, considering its market capitalization is notably smaller than that of Bitcoin.
Retail traders’ aggressive buying of ETHA call options could compel market makers to hedge by acquiring the underlying ETHA shares, potentially leading to a more pronounced effect on the price of ETHA and, by extension, Ethereum.
“We believe option sellers will generally dominate in the long-run but in short bursts we could see retail momentum traders become massive buyers of ETHA calls and create gamma squeeze effects, similar to what we’ve seen on meme coin stocks like GME. ETH will be easier to squeeze than BTC given it is only $190 billion market cap vs BTC’s $1.65 trillion,” Joshua Lim, Global Co-head of Markets at FalconX, told BeInCrypto.
Arbitrage involves exploiting price differences for the same or nearly identical assets across different markets or forms. This is done by buying in the cheaper market and selling in the more expensive one.
According to Grant, traders will increasingly look for and exploit these price differences as the market for ETH options on different platforms develops.
While arbitrage activity is expected to refine pricing and liquidity within the Ethereum options market, the asset continues to operate under the shadow of Bitcoin’s established market leadership.
Will Landmark Options Approval Help Ethereum Close the Gap on Bitcoin?
Though Ethereum achieved a major landmark this week, it faces competition from a major rival: Bitcoin.
In late fall of 2024, options trading started on BlackRock’s iShares Bitcoin Trust (IBIT), becoming the first US spot Bitcoin ETF to offer options. Though not even a year has passed since the original launch, options trading on Bitcoin ETFs experienced strong trading volumes from retail and institutional investors.
According to Kadan Stadelmann, Chief Technology Officer of Komodo Platform, options trading for Ethereum ETFs will be comparatively underwhelming. Bitcoin will still be the cryptocurrency of choice for investors.
“Compared to Bitcoin’s Spot ETF, Ethereum’s ETF has not seen such stalwart demand. While options trading adds institutional capital, Bitcoin remains crypto’s first mover and enjoys a greater overall market cap. It is not going anywhere. It will remain the dominant crypto asset for institutional portfolios,” Stadelmann told BeInCrypto.
Consequently, his outlook does not include Ethereum’s market position surpassing Bitcoin’s in the immediate term.
“The once-promised flippening of Bitcoin’s market capitalization by Ethereum remains unlikely. Conservative and more-monied investors likely prefer Bitcoin due to its perceived safety compared to other crypto assets, including Ethereum. Ethereum, in order to achieve Bitcoin’s prominence, must depend on growing utility in DeFi and stablecoin markets,” he concluded.
While that may be the case, options trading doesn’t harm Ethereum’s prospects; it only strengthens them.
Can Ethereum’s Options Trading Era Capitalize on Opportunities?
Ethereum is now the second cryptocurrency with SEC approval for options trading on its ETFs. This single move will further legitimize digital assets for institutions, increasing their presence in traditional markets and boosting overall visibility.
Despite recent significant blows to Ethereum’s market position, this news is a positive development. Although it might not be sufficient to surpass its primary competitor, it represents a step in the right direction.
As investors get used to this new opportunity, their participation level will reveal how beneficial it will be for Ethereum.
