According to ChainCatcher, Kaiko released a report stating that ETF options are the latest bullish signal for BTC. Several BTC ETF options made their debut last week, with BlackRock's IBIT options reaching a notional trading volume of $1.9 billion on the first day, totaling 354,000 contracts. In contrast, BITO options had a trading volume of $360 million when they were launched in 2021. This strong purchasing power highlights robust demand for BTC-linked derivatives and bullish market sentiment.
It is worth noting that over 80% of the trading volume in the IBIT first date options is in call options, reflecting a strong belief in the market for a rise in Bitcoin prices. Trading activity is mainly concentrated on options with upcoming expirations, with contracts expiring in December 2024 dominating. The share of IBIT call options significantly exceeds that of the largest crypto-native options market, Deribit, where call options account for 64% of the trades.
The launch of a BTC spot ETF option could further accelerate institutional adoption. These tools allow investors to hedge risks and develop complex strategies to profit from Bitcoin's volatility. Additionally, they can drive the emergence of structured products, which are customized investments that offer specific risk-return characteristics, often developed by large financial institutions. This could attract new capital and a new wave of experienced institutional traders.
