Original｜Odaily Planet Daily
Author: jk
On Tuesday, November 19th, local time in the United States, options trading for the spot Bitcoin ETF was officially launched on Nasdaq, pushing the price of Bitcoin to a new record high.
BlackRock’s iShares Bitcoin Trust (IBIT) is the first spot Bitcoin exchange-traded fund (ETF) to receive options approval, with a notional exposure of nearly $1.9 billion on its first day of trading. Earlier news came out that the ETF received approval for options trading from the U.S. Securities and Exchange Commission on September 20.
“ The final tally for $IBIT’s first-day options trading was 354,000 contracts, with a notional exposure of nearly $1.9 billion. Of these, 289,000 were calls and 65,000 were puts, for a 4.4:1 ratio. These options trades are almost certainly one of the main reasons that drove Bitcoin’s price to a new high today,” said James Seyffart, ETF analyst at Bloomberg Intelligence, on X.
His colleague, analyst Eric Balchunas, said, “$1.9 billion in first-day volume is unprecedented. For comparison, BITO (ProShares Bitcoin Strategy ETF, also known as the Bitcoin futures ETF) had $363 million in first-day volume, and it has been around for four years. In addition, the number of contracts for IBIT options is limited to 25,000. But even so, $1.9 billion is not considered ‘massive’. For example, the gold ETF (GLD) has a volume of $5 billion today, but it may grow further if it is given a few days or weeks.”
He added, “In particular, the C100 options expiring on December 20 are basically betting that the price of Bitcoin will double within a month.”
According to Coingecko data, Bitcoin reached its all-time high at noon local time, with a maximum price of $94,040.
Bitcoins recent 24-hour trend. Source: Coingecko
Market Voice
According to The Block, market structure expert Dennis Dick expects that with the rise of spot Bitcoin ETF options trading, Bitcoins volatility will actually decrease. As the number of open contracts increases, natural buyers and sellers will form on both sides of the market... This will increase market depth, improve liquidity, and thus reduce volatility, Dick said.
Nate Geraci, president of ETF Store, predicts that there will be a new wave of ETF applications. I mentioned before that I now expect an increase in ETF applications based on Bitcoin options strategies, Geraci said on social media. Including Bitcoin ETFs covering bullish strategies, buffer Bitcoin ETFs, tail risk Bitcoin ETFs, convex Bitcoin ETFs, etc.
At the same time, according to The Block, Grayscale Fund quickly submitted an updated prospectus for a Bitcoin covered bullish ETF. The fund will provide exposure to GBTC and Bitcoin and generate income by purchasing option contracts on Bitcoin ETP.
“Grayscale is excited that options trading on GBTC and Bitcoin will begin soon… further developing the ecosystem around our U.S.-listed Bitcoin ETPs,” said David LaValle, Global ETF Director at Grayscale Investments. “Demand for Bitcoin ETPs is unprecedented, and the Grayscale team is proud to offer a range of Bitcoin products that promote investor choice, including the lowest-cost Bitcoin ETP, and make exposure to Bitcoin and the crypto asset class more accessible.”
Bitwise and Grayscales Bitcoin ETF options will start trading tomorrow , and Odaily Planet Daily will continue to follow up on the reports for you.
