BlackRocks Bitcoin ETF options brings in nearly $2b in trade on day one
- Bitcoin hit a record of more than $94,000 following the launch of options contracts on BlackRocks IBIT
- 289,000 contracts were Calls and 65,000 were Puts, meaning investors were bullish on a Bitcoin price rise
- Joe Constori said the market is bullish that Bitcoins price will reach $100,000 by the end of 2024
Options contracts on BlackRocks iShares Bitcoin Trust (IBIT) saw unheard-of notional exposure levels, helping push Bitcoin to a record of over $94,000.
Taking to X, Bloomberg ETF analyst James Seyffart, said:
Final tally of $IBITs 1st day of options is just shy of $1.9 billion in notional exposure traded via 354k contracts. 289k were Calls & 65k were Puts. Thats a ratio of 4.4:1. These options were almost certainly part of the move to the new #Bitcoin all time highs today.
UPDATE: Final tally of $IBIT's 1st day of options is just shy of $1.9 billion in notional exposure traded via 354k contracts. 289k were Calls & 65k were Puts. That's a ratio of 4.4:1. These options were almost certainly part of the move to the new #Bitcoin all time highs today pic.twitter.com/IN3s9hajJ2
James Seyffart (@JSeyff) November 19, 2024
Buying calls is bullish as investors only profit if the price of Bitcoin goes up. With the new options contract, investors can speculate on price movements by trading shares at predetermined prices.
Joe Constori, head of growth at Theya and institutional lead at the Bitcoin Layer, said on X that TLDR; the market is bullish that Bitcoins price ends the year well over $100k.
Bloombergs senior ETF analyst Eric Balchunas added:
$1.9b is unheard of for Day One. For context, $BITO did $363m and thats been around for four years. And also this is with 25,000 contract position limits.
$1.9b is unheard of for Day One. For context, $BITO did $363m and that's been around for four years. And also this is with 25,000 contract position limits. That said, $1.9b isn't quite big dog level yet tho, eg $GLD did $5b today, but give it a few more days/weeks. https://t.co/nAr2rracjb
Eric Balchunas (@EricBalchunas) November 19, 2024
Increasing institutional interest
The launch of BlackRocks options contracts comes as institutional interest in Bitcoin rises. With the IBIT options, investors can gain exposure to new avenues of investment while managing their risk through the call and put options without owning the underlying asset.
In January, the US Securities and Exchange Commission (SEC) approved the first 11 spot Bitcoin exchange-traded fund (ETFs). Since then, the market has grown with BlackRock leading the way.
At the end of October, BlackRocks IBIT reached $30 billion in net assets in a record 293 days. Two weeks later, it reached $40 billion in net assets in 211 days, showcasing rising interest in crypto investments.
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