Catenaa, Wednesday, November 20, 2024- BlackRock’s iShares Bitcoin Trust (IBIT) saw an unprecedented $1.9 billion in notional exposure traded on its first day of options trading, contributing to a surge in Bitcoin’s price, which hit a new all-time high of $93,900 yesterday (Tuesday 19).
The launch of options trading for the spot Bitcoin ETF marked a historic event, as it brought nearly 354,000 contracts to market, with 289,000 being call options and 65,000 put options.
The trading volume, with a call-to-put ratio of 4.4:1, was largely credited for driving Bitcoin to its record price.
For context, the first-day options trading volume of BlackRock’s ETF far exceeded that of similar products, with BITO’s four-year trading history seeing just $363 million on its debut.
Bloomberg noted that although $1.9 billion is exceptional, it still lags behind larger ETFs like GLD, which hit $5 billion in options trading on the same day.
Experts believe the influx of options trading will reduce Bitcoin’s volatility by increasing liquidity as open interest rises, fostering a more stable market.
This follows a growing interest in Bitcoin ETFs, with options from Bitwise and Grayscale set to launch in the coming days.
