In a significant development for the cryptocurrency market, BlackRock, the world’s largest asset management firm, has officially launched its iShares Bitcoin Trust ETF (IBIT) for options trading on Nasdaq. This comes as Bitcoin (BTC) soars to an unprecedented high of $94,041.
The Securities and Exchange Commission (SEC) approved Bitcoin ETF trading options in September. Following this, IBIT became the first crypto product to complete the final clearing steps within just four days, receiving approval on Nov. 18. Now, IBIT is live and available for trading on the U.S. stock market.
James Seyffart, Bloomberg Intelligence ETF analyst, reported on Nov. 19 that 289,000 call options and 65,000 put options were traded in a single day. This suggests a significant bet on price increases, reflecting an expectation that Bitcoin prices will continue to rise.
The total options trading exposure amounts to $1.9 billion, indicating a high level of market interest in this new crypto product. Seyffart also noted that this flurry of market activity had played a part in propelling Bitcoin’s price to its new all-time high of $94,041.
In terms of trading options, Seyffart highlighted a 4.4:1 ratio, indicating a strong display of trader optimism about future trading prospects.
Eric Balchunas, another Bloomberg ETF analyst, drew a comparison between IBIT and the SPDR Gold Trust (GLD), a product that was released two decades ago and trades for $5 billion today.
The market is eagerly awaiting the approval of yet another Bitcoin ETF trading option. Bitwise Bitcoin ETF (BITB), widely regarded as the most anticipated Bitcoin ETF trading option, is expected to launch later this week.
This represents a significant milestone for the crypto industry, heralding a new level of sophisticated trading. Traders will have the opportunity to ride on these waves, observing institutional holdings and speculating on price movements without having to invest in large quantities.
The launch of the trading option in the U.S. has seen Bitcoin’s price reach a record high of $94,041. Trading volumes have surged to $85 billion, while market capitalizations have ascended to a staggering $1.8 trillion.
The latest developments represent a significant leap forward for the cryptocurrency industry, and the high levels of trading activity indicate market confidence in the future of Bitcoin and its potential for continued growth.
