CoinVoice has recently learned that Kaiko released a report stating that ETF options are the latest bullish signal for BTC. Last week, multiple BTC ETF options made their debut, with BlackRock's IBIT options reaching a notional trading volume of $1.9 billion on the first day, totaling 354,000 contracts. In comparison, the trading volume for BITO options at the time of its launch in 2021 was $360 million. This strong buying power highlights the robust demand for BTC-linked derivatives and bullish market sentiment.
It is noteworthy that over 80% of the trading volume in IBIT's first-date options is comprised of call options, reflecting a strong belief in the market for a rise in Bitcoin prices. Trading activity is primarily focused on options with near-term 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 trading.
The launch of BTC spot ETF options may further accelerate institutional adoption. These tools allow investors to hedge risks and formulate complex strategies to profit from Bitcoin's volatility. Additionally, they can drive the creation 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. [Original link]
