On November 19, BlackRock’s iShares Bitcoin Trust (IBIT) made a significant milestone by launching options trading for the first spot Bitcoin ETF, contributing to Bitcoin’s new record high.
Market Activity and Bitcoin ETF Options
The launch generated notable market buzz, with nearly $1.9 billion in trading activity. Bloomberg Intelligence ETF analyst James Seyffart highlighted these figures as likely pivotal in Bitcoin’s record high. In options trading, a call option allows the buyer to purchase an asset at a predetermined price within a set timeframe, while a put option allows the holder to sell the asset at a specified price before expiration.
Comparing Bitcoin ETFs
Compared to the ProShares Bitcoin Strategy ETF (BITO), the first ETF offering Bitcoin exposure in the U.S., recent Bitcoin options trading activity is significantly higher. For instance, BITO recorded $363 million in trading volume on its debut, which pales in comparison to the $1.9 billion trading volume of the new ETF. However, compared to established ETFs like $GLD, which recorded $5 billion in a single day, the new ETF still has room to grow. These figures indicate the potential for increased investor interest as market momentum builds.
What’s on the Horizon?
The successful debut of IBIT’s options trading, which saw $4.28 billion in value traded on November 19, highlights the growing interest in Bitcoin-related financial instruments. This milestone is typically associated with combined flows from multiple high-performing funds, not a single entity. Grayscale is set to launch options for its spot Bitcoin ETFs on November 20, which will likely intensify competition within institutional-grade crypto investment products in the United States.
The emergence of new options products puts Bitcoin and related assets in the spotlight, signaling a significant shift in the perception of cryptocurrency investments.
