BlackRock’s spot Bitcoin ETF, the iShares Bitcoin Trust ETF (IBIT), saw nearly $2 billion in trading volume through options contracts. This may have contributed to Bitcoin’s rise above $94,000. Bloomberg ETF analyst James Seyffart noted that IBIT saw $1.9 billion in trading volume on its first day with 354,000 contracts. These options helped Bitcoin reach new highs.
Options contracts give investors the right to buy and sell ETF shares at specific prices. The put/call ratio of 0.225 on the first day suggests that Bitcoin is expected to rise. Bloomberg analyst Eric Balchunas called this “very optimistic.”
How do you think this development will affect Bitcoin’s long-term price action? We welcome your comments.