Industry reports on ETF market shares

BlackRock's Bitcoin ETF Options Launch November 19, Surpass BITO's First-Day Volume

Nov 19, 2024, 01:18 PM

Options trading on spot Bitcoin exchange-traded funds (ETFs), specifically BlackRock's iShares Bitcoin Trust (IBIT), began on Tuesday, November 19th, marking a significant milestone in the cryptocurrency market. The Options Clearing Corporation (OCC) confirmed it is preparing for the clearance and settlement of Bitcoin ETF options following the Commodity Futures Trading Commission's (CFTC) approval. Nasdaq listed these options, allowing investors to use derivatives to bet on or against Bitcoin. On the first day, IBIT options saw approximately 350,000 contracts traded, surpassing the initial volume of previous Bitcoin futures ETFs like BITO, which saw 145,000 options traded at launch. The largest trade included a purchase of 5,000 January $55 call options at $4.70, reflecting bullish sentiment as investors anticipate higher Bitcoin prices. The options on the IBIT ETF will settle in Bitcoin, involving actual delivery upon exercise, potentially enhancing liquidity and institutional adoption in the largest capital markets.