High implied volatility in Bitcoin ETF options (50-90% annualized) makes options expensive to buy, creating vol crush risk where traders lose money despite correct directional calls when volatility collapses

"High implied volatility makes options expensive to buy. A trader who buys a call option may be correct about the direction of Bitcoin but still lose money if implied volatility drops (a phenomenon called 'vol crush'). This commonly occurs after anticipated events when uncertainty resolves and implied volatility collapses."