- IBIT options recorded a groundbreaking first day of trading.
- BTC is looking at the $100,000 target after the latest all-time high.
On November 19, options trading for place Bitcoin [BTC] ETFs have officially gone live. This development pushed Bitcoin to a new all-time high (ATH), surpassing the $94,000 mark.
This landmark moment in crypto finance was led by BlackRock’s iShares Bitcoin Trust ETF [IBIT]the first spot Bitcoin ETF approved for options trading on Nasdaq.
A dynamic day one for IBIT options
The debut of IBIT options witnessed a dazzling activity, with Bloomberg ETF analyst James Seyffart revealing on X (formerly Twitter), trading reached a theoretical exposure of almost $1.9 billion.
This involved 354,000 contracts, 289,000 calls and 65,000 puts, resulting in a call-to-put ratio of 4.4:1. Seyffart called these trades the main catalyst behind BTC’s ATH.
Jeff Park, head of Alpha Strategies at Bitwise, called the day historic for Bitcoin ETF options trading. He marked some notable insights, including putting on a ‘volatility smile’ at the start of the day, which widened towards the end.
Although the BVIV index showed fluctuating IV movements, it did not predictably correlate with BTC price movements. Park pointed out that the 1/17/24 C55 contract was trading at over 40K, demonstrating deep liquidity.
Meanwhile, the 12/20/24 C100 contract attracted significant interest early on, providing a high-risk veg opportunity. The put/call ratio, which is around 0.23, shows a strong preference for upside calls over downside puts.
Contrary to expectations, Park noted that IBIT’s options trading did not reduce interest in MicroStrategy [MSTR] options, which maintained their independent momentum and closed higher.
Industry experts have their say
The crypto industry widely recognized the importance of the first day of IBIT. Bloomberg’s Senior ETF Analyst Eric Balchunas noted on X, that $1.9 billion in fictional exposure was “unheard of” for a debut.
He noted that $BITO only raised $363 million at launch, despite being on the market for four years. However, Balchunas added:
“That said, $1.9 billion isn’t exactly a big dog level, for example $GLD made $5 billion today, but give it a few more days/weeks.”
Nate Geraci, president of the ETF Shop, emphasized that the availability of options fundamentally changes market dynamics. He declared that options make it,
“Much easier and more attractive for institutional investors to enter the arena.”
What’s next for Bitcoin?
While IBIT got off to a spectacular start, the excitement doesn’t stop there. Options on Bitcoin ETFs from Bitwise and Grayscale will launch on Wednesday, with additional offerings expected soon.
With Bitcoin hitting $94,000 on its first launch of options trading, speculation now turns to whether $100,000 could be next as more products go live.
Recent trends suggest this may be plausible. According to AMBCrypto, BTC’s current trajectory reflects previous patterns that preceded major rallies.
Moreover, Fundstrat Capital CIO Tom Lee agreed, predicting that the $100,000 milestone could be crossed sooner rather than later.
Read Bitcoin [BTC] Price forecast 2024-2025
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.