Bitcoin ETF

Bitcoin

Propel

<h2 id="key-points">Key Points</h2> 
<ul> 
 <li>Options trading for spot Bitcoin ETFs went live on November 19, pushing Bitcoin to a new all-time high of over $94,000.</li> 
 <li>The first day of trading for BlackRock’s iShares Bitcoin Trust ETF [IBIT] options saw nearly $1.9 billion in notional exposure.</li> 
</ul> 
<p> On November 19, the trading of options for spot <a href="https://coineagle.com/price/bitcoin/">Bitcoin (BTC)</a> ETFs was launched. This led to Bitcoin reaching a new record, exceeding the $94,000 mark.</p> 
<p>This significant event in the crypto finance world was led by BlackRock’s iShares Bitcoin Trust ETF [IBIT]. This was the first spot Bitcoin ETF that was approved for options trading on Nasdaq.</p> 
<h2 id="ibit-options-impressive-debut">IBIT Options’ Impressive Debut</h2> 
<p>The first day of trading for IBIT options saw immense activity. According to Bloomberg ETF analyst James Seyffart, trading hit nearly $1.9 billion in notional exposure.</p> 
<p>There were 354,000 contracts, 289,000 calls, and 65,000 puts, resulting in a call-to-put ratio of 4.4:1. Seyffart attributed these trades as the main driver behind BTC’s all-time high.</p> 
<p>Jeff Park, Head of Alpha Strategies at Bitwise, described the day as historic for Bitcoin ETF options trading. Several key observations were made, including the creation of a “volatility smile” early in the day, which expanded further by the close.</p> 
<p>Interestingly, while the BVIV Index showed fluctuating IV moves, it didn’t correlate predictably with BTC price trends. Park noted that the 01/17/24 C55 contract traded over 40K, showing deep liquidity.</p> 
<p>The 12/20/24 C100 contract garnered significant early interest, indicating a high-risk vega opportunity. The put/call ratio, sitting at approximately 0.23, showed a strong preference for upside calls over downside puts.</p> 
<p>Contrary to expectations, Park observed that IBIT’s options trading did not lessen interest in MicroStrategy [MSTR] options, which kept its independent momentum and closed higher.</p> 
<h2 id="industry-reactions">Industry Reactions</h2> 
<p>The crypto industry broadly recognized the significance of IBIT’s first day. Bloomberg’s Senior ETF analyst Eric Balchunas commented that $1.9 billion in notional exposure was “unheard of” for a debut.</p> 
<p>However, Balchunas added that $1.9 billion isn’t quite big dog level yet, eg $GLD did $5b today, but give it a few more days/weeks.</p> 
<p>Nate Geraci, President of the ETF store, emphasized that the availability of options fundamentally changes the market dynamic. He stated that options make it much easier &amp; more enticing for institutional investors to enter the arena.</p> 
<h2 id="bitcoin-s-future">Bitcoin’s Future</h2> 
<p>While IBIT had a remarkable start, the excitement doesn’t stop here. Options on Bitcoin ETFs from Bitwise and Grayscale are set to launch on Wednesday, with additional offerings expected soon.</p> 
<p>With Bitcoin hitting $94,000 with the first options trading launch, speculation now turns to whether $100,000 can be next as more products go live.</p> 
<p>Recent trends suggest this may be plausible. According to AMBCrypto, BTC’s current trajectory mirrors previous patterns that preceded significant rallies.</p> 
<p>Furthermore, Fundstrat Capital’s CIO Tom Lee agreed, predicting the $100K milestone could be crossed sooner than expected.</p> 
<p>As the first day of IBIT options trading demonstrated, the evolving Bitcoin market is entering a phase of dynamic growth, with record-breaking milestones seemingly within reach.</p>

BlackRock’s IBIT Launch: Can the Buzz Propel BTC Beyond $94K?

Table of Contents

CoinEagle.com

Other articles published on Nov 20, 2024

GIGA Token Holder Loses $6.09M in Phishing Scam

Bears Hold a Tight Grip Over the Avalanche Price Rally While Sentiments Are Bullish-Here’s What’s...

XRP Price Breakout: Is $2.60 Within Reach?

Political Betting Contracts, Cross-Chain Communication Advances, and Crypto Payments in Detroit

Trump Media in Advanced Talks to Acquire Crypto Firm Bakkt

Pro-Bitcoin In Power: A Bold Choice By Trump For Trade

Join our free newsletter for daily crypto updates!