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Grayscale Launches Options for Bitcoin ETFs in Response to BlackRock Record
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Grayscale Investments, a digital asset manager, announced that it will begin offering options trading for its spot Bitcoin ETFs starting this Wednesday (20). The launch comes on the heels of record activity from BlackRock’s iShares Bitcoin Trust (IBIT) on its first day of options trading, driving the price of Bitcoin to a new all-time high.
The manager explained that the objective is to expand the ecosystem around its exchange-traded products (ETPs) listed in the United States, such as the Grayscale Bitcoin Trust (GBTC) and the Bitcoin Mini Trust (BTC). To achieve this, the fund will follow a “covered call” strategy. The idea is to combine the buying and selling of options contracts while holding Bitcoin or GBTC as collateral.
Grayscale’s initiative comes shortly after the Options Clearing Corporation (OCC) approved Bitcoin ETF options trading. The company updated the prospectus for its Bitcoin Covered Call ETF on January 11 to include this new possibility.
The debut of IBIT with options trading generated great movement in the market, as reported by Todaysgist. On the first day, 354 thousand contracts were traded. Of this total, 289 thousand were purchase options (calls) and 65 thousand were sales options (puts). This resulted in a ratio of 4.4:1. In other words, most investors bet on the rise in the price of Bitcoin.
Grayscale follows in the footsteps of BlackRock
Bloomberg analyst Eric Balchunas highlighted that IBIT’s $1.9 billion in options volume was “unprecedented” for an ETF’s first day of trading. He compared the performance to that of BITO, a Bitcoin futures ETF from ProShares, which recorded $363 million in one day even after four years of existence.
Grayscale’s debut also follows its legal victory against the SEC last year. At the time, the US Court of Appeals ordered the body to review the refusal to transform GBTC into a spot ETF. This milestone defied regulatory resistance that for years prevented the approval of cryptocurrency ETFs.
The recent growth in the Bitcoin ETF and options market coincided with the asset’s rise, which reached $94,041 on Tuesday. Analysts suggest that demand for options may have directly influenced the price movement.
Grayscale Launches Options for Bitcoin ETFs in Response to BlackRock Record
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Grayscale Launches Options for Bitcoin ETFs in Response to BlackRock Record
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Grayscale Launches Options for Bitcoin ETFs in Response to BlackRock Record
