- IBIT options recorded a groundbreaking first day of trading.
- BTC eyes the $100K target after the latest record high.
As a seasoned financial analyst who’s been navigating the crypto markets since their infancy, I can confidently say that the debut of IBIT options was nothing short of electrifying. It’s like watching a rocket launch – except instead of a physical object, it’s the value of Bitcoin soaring to new heights.
On November 19th, I experienced a pivotal moment as options trading for spot Bitcoin ETFs commenced. This event catapulted Bitcoin to an unprecedented peak in its history, soaring past the $94,000 milestone, marking a new all-time high for me as a crypto investor.
This significant milestone in cryptocurrency finances is being led by the BlackRock’s iShares Bitcoin Trust ETF (IBIT), marking the first spot Bitcoin ETF authorized for options trading on Nasdaq, a historic move.
A dynamic day one for IBIT options
The initial launch of IBIT options saw a remarkable surge in activity, as indicated by Bloomberg ETF analyst James Seyffart’s statement on X (previously known as Twitter). He reported that the trading volume amounted to approximately $1.9 billion in total value exposure.
354,000 contracts, comprising 289,000 call options and 65,000 put options, were the main driving force for Bitcoin reaching its All-Time High (ATH), according to Seyffart’s analysis. The call options accounted for approximately 4.4 times more than the put options.
According to Jeff Park, who is the Chief of Alpha Strategies at Bitwise, he declared the day as significant for Bitcoin Exchange-Traded Fund (ETF) options trading. He pointed out several important observations, such as the emergence of a “volatility curve” early in the day, which expanded more by the end of the trading period.
It’s worth mentioning that although the BVIV Index displayed variable IV shifts, it didn’t consistently align with Bitcoin’s price fluctuations. On January 17, 24, the C55 contract was traded above 40K, suggesting significant market depth.
Initially, the 12/20/24 C100 agreement drew substantial early attention, offering a notable high-risk vega chance. The put/call ratio, around 0.23, showed a clear preference for buying call options rather than put options, suggesting anticipation for market upturns over downturns.
Instead of what was anticipated, Park observed that the options trading by IBIT didn’t dampen the enthusiasm for MicroStrategy [MSTR] options. On the contrary, these options retained their own vigor and ended up closing at a higher price.
Industry experts weigh in
On its first day, IBIT’s entry into the crypto industry was highly recognized as remarkable. In fact, Eric Balchunas, a senior ETF analyst at Bloomberg, noted that the $1.9 billion in notional exposure on X’s debut was virtually unparalleled for a newcomer in this field.
He noted that by comparison, $BITO recorded just $363 million on its launch, despite being in the market for four years. However, Balchunas added,
“That said, $1.9b isn’t quite big dog level yet tho, eg $GLD did $5b today, but give it a few more days/weeks.”
Nate Geraci, President of the ETF Store, highlighted that the introduction of options significantly alters the way markets operate. He explained that having options available provides a new dimension to the market’s behavior.
“Much easier & more enticing for institutional investors to enter arena.”
What’s next for Bitcoin?
Following a strong debut, IBIT’s momentum isn’t slowing down. Starting this Wednesday, Bitcoin ETF options from Bitwise and Grayscale will be introduced, with more possibilities on the horizon.
As Bitcoin reaches a record high of $94,000 following the debut of its first options trading platform, investors are left wondering if the price might surge even further to hit $100,000 as more similar services become available.
Based on current trends, it seems quite possible that this could happen, as BTC’s recent path appears similar to past patterns leading up to substantial price increases, according to AMBCrypto.
In addition, Tom Lee, Chief Information Officer at Fundstrat Capital, agreed with this prediction, suggesting that the $100,000 mark might be reached earlier than expected.
Read Bitcoin [BTC] Price Prediction 2024-2025
On the inaugural day of IBIT options trading, it’s clear that the Bitcoin market is embarking on an exciting period of rapid expansion, as it appears to be hurtling towards significant new achievements.
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2024-11-20 17:18