Yesterday, November 19, options for the iShares Bitcoin Trust (IBIT), the bitcoin (BTC) exchange-traded fund (ETF), issued and managed by BlackRock, debuted on the market.
As CriptoNoticias has explained, these instruments They are derivative financial contracts which give investors the right, but not the obligation, to buy or sell an ETF at a specific price on a specific date in the future.
According to data shared by James SeyffartBloomberg Intelligence analyst, These options accumulated $1.9 billion in notional exposure negotiated through 354,000 contracts, of which 289,000 were purchase options and 65,000 were sales. “It is a ratio of 4.4:1,” he clarified.
This relationship means that for every 4.4 call option contracts, 1 put contract was traded. The proportion can be interpreted as an indicator of bullish sentiment among institutional investors. In other words, most expect that BTC price rises.
Buy options exceed sell options. Source: James Seyffart – X.
In this regard, Seyffart indicated: “It is almost certain that these options were part of the movement towards the new all-time highs.” The launch of these financial products can attract greater institutional and corporate investment, by facilitating the management of exposure to risk of bitcoin.
Eric Balchunas, hedge fund specialist at Bloomberg Intelligence, manifested that “1.9 billion dollars is something unheard of for the first day.” To put it in perspective, he compared it to the performance of the ProShares Bitcoin Strategy ETF (BITO), the first bitcoin futures ETF that earned $363 million and “has maintained that level for four years.”
The movement that registered the price of the coin created by Satoshi Nakamoto agrees with Seyffart. Amid the debut of options contracts, The price of BTC marked a new all-time high (ATH) after passing the $94,500 barrier and is getting closer to reaching $100,000.
As seen in the following graph of TradingViewthe price of the digital asset is $94,170.
Bitcoin price so far in 2024. Source: TradingView.
In this framework, Grayscale Investments, a Cryptocurrency ETF management and issuance firm, launches this Wednesday trading options on your BTC exchange-traded fund.
According to the company, This Wednesday they launched options in the Grayscale Bitcoin Trust (GBTC) and Grayscale Bitcoin Mini Trust (BTC) funds to “further develop the ecosystem around our US-listed bitcoin ETPs.”
Why is it important for BTC?
Joe Consorti, cryptocurrency and macroeconomics market analyst, highlighted the magnitude of the launch of these financial products and considered that The impact is much greater than many may imagine..
In his opinion, November 19, 2024 marks a crucial moment for the “integration of BTC with traditional finance” because it began a “new era in price dynamics, volatility and institutional adoption.” He also said:
“Derivatives, like options, are the foundation of capital markets, providing liquidity, price discovery and risk management tools for participants, especially institutional players who represent the core of the market.”
Joe Consorti, financial analyst.
In his opinion, options in digital currency ETFs will expand the investor base and allow “a robust derivatives ecosystem to reduce volatility and improve price discovery, facilitating large-scale institutional participation.” Likewise, he highlighted: “The introduction of options on bitcoin ETFs is not just about a new product, but about transforming the market.”
Finally, the specialist pointed out that the “financial future of BTC is just beginning,” emphasizing that with the incorporation of these instruments “the doors have been opened to the largest and deepest sources of liquidity on a global level.”
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