The approval of Bitcoin (CRYPTO: BTC) futures contracts by the United States Securities and Exchange Commission has also created new leverage opportunities through more advanced financial products.

Consequently, investors will be able to use those advanced financial instruments to hedge or lever their Bitcoin positions — both short and long.

See Also: 7 Stocks That Could Capitalize On First Bitcoin ETF's Debut

Bloomberg senior ETF analyst Eric Balchunas said that "options are huge" since "retail-YOLO types will be able to trade calls on Bitcoin for the first time in regulated financial markets. Institutions can use puts to hedge or go short Bitcoin.”

Derivatives such as options provide investors a new way to profit from Bitcoin's volatility, Jesse Produman, co-founder and CEO at automated crypto investment advisor Makara, told Bloomberg. 

"So any additional option, pardon the pun, that U.S. investors have to obtain access to options I think is a net benefit.”

BTC Price Action: Bitcoin is trading 4.79% higher over 24 hours at $66,513, according to CoinMarketCap data.