Catenaa, Thursday, November 28, 2024 – Grayscale Investments is set to introduce options trading for its Bitcoin exchange-traded products (ETPs) this week, capitalizing on the momentum sparked by BlackRock’s iShares Bitcoin Trust (IBIT).
BlackRock’s ETF set a benchmark with $1.9 billion in notional exposure and 354,000 contracts traded on its debut, driving Bitcoin prices to a record $94,041 on Tuesday.
Grayscale plans to offer options trading for its Grayscale Bitcoin Trust (GBTC) and Bitcoin Mini Trust (BTC), aiming to expand the Bitcoin ETF ecosystem.
The firm’s rapid rollout follows recent approval of Bitcoin ETF options by the Options Clearing Corporation (OCC).
Grayscale has also updated its prospectus for a Bitcoin Covered Call ETF, designed to generate income through a covered call strategy while holding Bitcoin or GBTC as collateral. Bloomberg analyst James Seyffart highlighted Grayscale’s swift response to market demand, emphasizing the firm’s commitment to advancing its product offerings.
This launch follows Grayscale’s landmark legal victory over the US Securities and Exchange Commission (SEC) last year, where a court mandated the SEC to reconsider its denial of Grayscale’s application to convert GBTC into a spot ETF.
Meanwhile, US spot Bitcoin ETFs have recorded significant inflows, with $816.44 million added on Nov. 19, a 220% increase from the prior day. Leading the surge were ARK’s ARKB, Fidelity’s FBTC, and BlackRock’s IBIT. Total trading volume across ETFs reached $4.78 billion.
The heightened interest in Bitcoin ETFs aligns with major institutional investments, including MicroStrategy’s $4.6 billion Bitcoin holdings and plans to raise $1.75 billion for further purchases. Growing economic uncertainties continue to drive corporate treasurers toward Bitcoin as a reserve asset.
