Pro crypto traders use IBIT options to bet on Bitcoin ETF hitting $100
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The debut of options tied to BlackRock's spot Bitcoin ETF, IBIT, has sparked significant interest among pro traders, with a staggering $1.9 billion in first-day trading volume on Tuesday. Most of the activity was concentrated in call options, signaling a strong bullish sentiment for Bitcoin and the ETF itself. The $100 call option, in particular, stood out, with over 32,000 contracts traded, indicating expectations that the ETF price could double in the coming months.
The ETF closed Tuesday at $52.70, and the $100 strike call dominated the December 12 expiry. This settlement date accounted for 40% of the total trading volume, with 354,000 contracts exchanged overall. The heightened activity reflects optimism that Bitcoin prices could surge significantly, doubling the ETF value.
The optimism surrounding IBIT options aligns with similar bullish activity on Deribit, the offshore crypto options exchange. Open interest on the $200,000 Bitcoin strike call reached $381 million, indicating traders anticipate Bitcoin spot prices could double. This overlap suggests strong market confidence in Bitcoin’s upward trajectory.
The mechanics of this trading also point to potential volatility spikes. According to Deribit, the surge in call option demand could set the stage for a gamma squeeze, where market makers hedging their positions drive additional price increases. Luuk Strijers, Deribit’s CEO, highlighted the role of U.S. institutions entering the space through IBIT, which could amplify this effect alongside Deribit’s existing activity.
Tuesday’s most popular IBIT option was the $55 strike call, with overall call option volume four times higher than puts. This indicates widespread bullish sentiment among traders. Call buyers are implicitly optimistic, expecting significant price surges or looking to hedge short positions against potential rallies.
The IBIT launch showcases the growing institutional interest in crypto markets, driven by BlackRock’s involvement and the product’s accessibility. As the bullish momentum continues, traders and institutions alike are preparing for potentially historic moves in Bitcoin prices, with both traditional and crypto-native platforms amplifying market dynamics.
The ETF closed Tuesday at $52.70, and the $100 strike call dominated the December 12 expiry. This settlement date accounted for 40% of the total trading volume, with 354,000 contracts exchanged overall. The heightened activity reflects optimism that Bitcoin prices could surge significantly, doubling the ETF value.
The optimism surrounding IBIT options aligns with similar bullish activity on Deribit, the offshore crypto options exchange. Open interest on the $200,000 Bitcoin strike call reached $381 million, indicating traders anticipate Bitcoin spot prices could double. This overlap suggests strong market confidence in Bitcoin’s upward trajectory.
The mechanics of this trading also point to potential volatility spikes. According to Deribit, the surge in call option demand could set the stage for a gamma squeeze, where market makers hedging their positions drive additional price increases. Luuk Strijers, Deribit’s CEO, highlighted the role of U.S. institutions entering the space through IBIT, which could amplify this effect alongside Deribit’s existing activity.
Tuesday’s most popular IBIT option was the $55 strike call, with overall call option volume four times higher than puts. This indicates widespread bullish sentiment among traders. Call buyers are implicitly optimistic, expecting significant price surges or looking to hedge short positions against potential rallies.
The IBIT launch showcases the growing institutional interest in crypto markets, driven by BlackRock’s involvement and the product’s accessibility. As the bullish momentum continues, traders and institutions alike are preparing for potentially historic moves in Bitcoin prices, with both traditional and crypto-native platforms amplifying market dynamics.