Crypto asset manager Grayscale Investments plans to introduce options trading for its spot Bitcoin ETFs on Thursday.
Grayscale launches the GBTC (Grayscale Bitcoin Trust) and BTC (Bitcoin Mini Trust) options trading to further develop the ecosystem around US-listed Bitcoin ETPs (Exchange Traded Products), the company said.
Grayscale is thrilled that Options trading on both $GBTC and $BTC will begin tomorrow – further developing the ecosystem around our US-listed #Bitcoin ETPs. pic.twitter.com/i7kFpOiogq
— Grayscale (@Grayscale) November 19, 2024
The announcement comes after BlackRock’s iShares Bitcoin Trust (IBIT) set a record on the first day of options trading, sending Bitcoin to a new all-time high.
According to the company, the purpose of the decision is to generate revenue by using a hedged buying strategy – writing and buying options contracts on Bitcoin Exchange Traded Products (ETPs).
The first day of IBIT options started with a huge trading volume of $1.9 billion
Grayscale follows the unprecedented debut of BlackRock’s IBIT options, which recorded nearly $1.9 billion in trading volume on its first day of trading. Bloomberg ETF analyst Seyffart posted on X that a total of 354,000 contracts were traded, with 289,000 calls and 65,000 puts. This ratio indicates that a much larger number of investors believed that the price of Bitcoin would rise.
“These options were almost certainly part of Bitcoin’s move to new all-time highs today” Seyffart wrote, referring to Bitcoin’s rise to $94,041 on Tuesday. It’s worth noting that Bloomberg’s senior ETF analyst Eric Balchunas called the $1.9 billion in trading volume “unheard of.”
“By comparison, BITO did $363 million and it’s been around for four years” Balchunas wrote on X, referring to ProShares’ Bitcoin futures ETF.
By the way, Grayscale’s new project is a year a Major legal victory against SEC started after Last August, the US Court of Appeals ordered the SEC to review the rejection of Grayscale’s request to convert its Bitcoin Trust into a spot ETF. The decision marked a turning point for crypto-ETFs, challenging the regulatory resistance that had blocked their approval for nearly a decade.
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