Trading Volume of Bitcoin ETF Options Reaches $2B on First Day

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BlackRock’s Bitcoin ETF IBIT options made an impressive debut, with nearly $2 billion in notional exposure traded on their first day. Analysts are calling this an “unheard of” feat in terms of metrics.

According to Bloomberg Intelligence analyst James Seyffart, there were 354,000 contracts traded, with calls accounting for 289,000 and puts for 65,000. This translates to a ratio of 4.4:1. Seyffart added that these options likely played a role in the surge of Bitcoin to a new all-time high on Tuesday night in the US.

The release of IBIT options marks a significant move in the market, as it is expected to attract more institutional investors to Bitcoin. The US Securities and Exchange Commission’s approval of options for several of the 11 spot Bitcoin ETFs on exchanges in September supports this trend. Additionally, more options products are anticipated to become available in the near future.

Options provide investors with more opportunities to trade, allowing them to buy or sell more easily without causing significant price movements. By tracking options data, it is possible to gain insight into what traders expect to happen to prices, providing a better understanding of market sentiments.