- Bitcoin ETF options made a significant debut on Nasdaq, as Blackrock’s iShares Bitcoin Trust ETF (IBIT) achieved a record-breaking $1.9 billion on the first day of trading.
- This significant development led to Bitcoin hitting a new all-time high of $94,105.
Yesterday Bitcoin ETF options were unveiled on Nasdaq. With the debut of these options, Blackrock, the world’s largest asset manager took the stage after its IBIT shares recorded an unprecedented trading volume of $1,9 billion on the first day.
Within the first hour of trading, Nasdaq reported a staggering 73,000 IBIT options contracts exchanged, placing it among the top 20 most active non-index options. By the end of the day, the total contracts traded surged to 354,000, translating to a notional exposure of $1.9 billion. This performance far surpassed previous records for Bitcoin-related financial products.
On the contrary, cryptocurrency has been riding high on a bullish spirit since the U.S. recent election. Taking this into account, Bitcoin has been on a bullish streak. Better yet the overwhelming demand for IBIT options contributed significantly in Bitcoin reaching a new all-time high of $94,105.
Picking up on this, James Seyffart, a renowned Bloomberg ETF analyst highlighted the overwhelming demand for IBIT options which in a big ratio contributed to Bitcoin’s success. The call-to-put ratio of 4.4:1, with 289,000 call options and 65,000 put options traded, demonstrated investors’ optimism about Bitcoin’s future performance.
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
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Final tally of IBIT’s first day of options is just shy of $1.9 billion in notional exposure traded via 354,000 contracts, these options were almost certainly part of the move to the new Bitcoin all-time highs today,” Bloomberg ETF analyst James Seyffart reported.
On the same, the first day’s success led to Bloomberg’s senior ETF analyst Eric Balchunas noting that “$1.9 billion is unheard of for day one.” This comes after he compared it with the first ETF offering Bitcoin exposure in the United States, the ProShares Bitcoin Strategy ETF (BITO), which did $363 million.
The introduction of IBIT options allow traders to implement hedging strategies, such as covered calls, to protect against downside risk while participating in potential upside. Moreover, they contribute to increased liquidity within the broader cryptocurrency ecosystem.
ETF strategist Todd Sohn also remarked that the availability of spot Bitcoin ETF options is expected to attract even more sophisticated investors, further solidifying Bitcoin’s position as a mainstream asset.
Grayscale’s Bitcoin ETFs to Offer Options Trading
Blackrock’s IBIT options success has ignited heightened interest in the broader adoption of Bitcoin ETFs. Grayscale announced via the X platform that it is set to launch its Bitcoin ETF and Bitcoin Mini Trust ETF (BTC) options trading today. This will for sure broaden access to regulated Bitcoin products.
Grayscale is thrilled that Options trading on both $GBTC and $BTC will begin tomorrow – further developing the ecosystem around our US-listed #Bitcoin ETPs. pic.twitter.com/i7kFpOiogq
— Grayscale (@Grayscale) November 19, 2024
Bitcoin Hits New Peak
Meanwhile, Bitcoin is currently trading hands with $93,085.39 marking a 1.46% surge in the last 24 hours. Additionally, the digital asset has recorded a6.33% and 36.11% surge in the past week and month respectively. In the same vein, The king of crypto has recorded a 1.63% surge in its market cap which is currently at $1.84 Trillion.
