BlackRock Bitcoin ETF Options See Record $1.9 Billion Traded on Debut Day

The debut of options on BlackRock’s spot Bitcoin exchange-traded fund (ETF), the iShares Bitcoin Trust (IBIT), saw an unprecedented $1.9 billion in total exposure traded on its first day, setting a new benchmark for the market. According to Bloomberg, the volume reached 354,000 contracts, reflecting huge investor interest. This surge in activity likely contributed to Bitcoin’s new all-time high, which surpassed $94,000 on November 19.

Bloomberg’s senior ETF analyst Eric Balchunas called the $1.9 billion total "unheard of for day one," especially when compared to the first Bitcoin ETF offering in the U.S., the ProShares Bitcoin Strategy ETF (BITO), which saw just $363 million on its debut. "This is very bullish, especially considering options with expirations in a month, essentially betting on Bitcoin’s price doubling within the next 30 days," Balchunas added.

Surge in Bitcoin Price Linked to IBIT Options

James Seyffart, another Bloomberg ETF analyst, also emphasized that the massive options activity likely contributed to Bitcoin’s spike. "These options were almost certainly part of the move to the new Bitcoin all-time highs today," he said.

Former CNBC Africa host Ran Neuner agreed with this assessment, explaining that when traders buy options, market makers typically hedge by purchasing the underlying spot Bitcoin ETF. This "huge net buying" of the ETF, in turn, leads to significant buying in the spot Bitcoin market, further driving up the price of Bitcoin.

Bitcoin reached a peak of $94,105 on Coinbase on November 19, according to TradingView data, amid the increased trading volume of IBIT options.

What the Options Data Shows

The options contracts offer investors the right to trade shares of the Bitcoin ETF at predetermined prices, allowing them to speculate on Bitcoin’s price movements. The notional exposure, which measures market exposure based on the price changes relative to Bitcoin, reached nearly $1.9 billion on IBIT’s first day.

The put/call ratio for the first day of trading was 0.225, indicating that the number of investors buying calls—betting on Bitcoin’s price rise—greatly outnumbered those betting on its decline with put options.

Major Market Impact

Joe Consorti, a well-known industry executive, called the launch of IBIT options a significant milestone, stating that listing options on spot Bitcoin ETFs "opens the doors to the largest and deepest liquidity pools on the planet." He also noted that the market appears optimistic about Bitcoin’s price trajectory, with many betting that Bitcoin will end the year well above $100,000.

Meanwhile, Grayscale, another major player in the crypto space, is also preparing to launch options for its spot Bitcoin ETF on November 20 in the United States, signaling more options-driven market activity in the near future.

This surge in trading volume and the corresponding impact on Bitcoin’s price demonstrate the growing influence of Bitcoin ETFs and the options market in shaping the cryptocurrency landscape.