BlackRock's spot Bitcoin ETF puts trading volume surged, but not bearish sentiment.

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On Friday, over 13,000 contracts of $30 out-of-the-money puts expiring on May 16 changed hands as the ETF rose by 1.7%.

At the same time, the trading volume of $35 puts expiring in January 2026 exceeded 10,000 contracts. Amberdata's Director of Derivatives stated that this is mainly due to market participants seeking passive income through a "cash-secured put selling" strategy.

In this strategy, put sellers provide insurance against price declines and are obligated to purchase the underlying asset at the predetermined price on the expiration date.

If the underlying asset's price remains high, sellers keep the premium; if the price drops, sellers must buy the asset at the predetermined price but still keep the premium.

Magadini noted that the trading volume of the January 2026 $35 puts was +10k, indicating net selling from Wall Street, possibly a sell-off of cash-secured puts.

Moreover, the trading price of IBIT call options continues to be higher than that of put options, with a positive call/put skew indicating a higher bullish sentiment.

On Friday, IBIT saw a net inflow of $393 million, accounting for the majority of total inflows into US-listed spot ETFs.

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