Options on Bitcoin ETFs Attract $2B on First Trading Day
The market saw the debut of options trading for a spot Bitcoin exchange-traded fund (ETF) on Tuesday, resulting in a surge in the price of Bitcoin to a new record high. The iShares Bitcoin Trust, managed by BlackRock, became the first spot Bitcoin ETF to be approved for options, leading to nearly $1.9 billion in notional exposure traded according to Bloomberg Intelligence ETF analyst James Seyffart.
The first day of options trading saw a total of 354,000 contracts being traded, with a ratio of 4.4:1 between calls and puts, indicating a strong demand for calls. These options likely contributed to the rise in Bitcoin’s price.
This tremendous volume on the first day of options trading for the IBIT ETF is unprecedented, surpassing the $363 million volume seen from a traditional Bitcoin ETF that has been around for four years. However, it is still lower than the $5 billion volume seen for other popular ETFs such as GLD.
It is expected that as the options continue to trade, the volume and demand for IBIT will grow even further, solidifying its position as a top performer in the market.
