Crypto asset manager Grayscale Investments plans to start trading bitcoin ETF options on Wednesday amid the first signs of strong investor appetite for such products.
The announcement comes a day after BlackRock's iShares Bitcoin Trust (IBIT) achieved a record-breaking first day of trading, Bitcoin to a new all-time high.
Gray scale launch Options trading GBTC (Grayscale Bitcoin Trust) and BTC (Bitcoin Mini Trust) to “More [develop] The ecosystem around our US-listed Bitcoin ETPs,” he said.
Following the Options Clearing Corporation (OCC). Approval of Bitcoin ETF Options, gray color quickly presented Updated prospectus for Bitcoin Covered Call ETF on January 11.
The facility aims to generate revenue by employing a covered call strategy – writing and buying option contracts on Bitcoin exchange-traded products (ETPs) with Bitcoin or GBTC as collateral.
Bloomberg EFF analyst Seifert noted the speed of Grayscale's response following the OCC's approval. Tweeting “There's no time to waste,” the asset manager said on Tuesday.
“They have filed an updated prospectus for their Bitcoin Covered Call ETF,” Seifert tweeted. “The Fund provides exposure to $GBTC and $BTC when writing and/or buying options contracts on Bitcoin ETPs for income.”
Grayscale follows an unprecedented debut Blackrock IBIT On the first day, the options recorded an exposed trade of about 1.9 billion dollars
Seifert shared details. X354,000 contracts were exchanged, including 289,000 calls and 65,000 puts, representing a call-to-put ratio of 4.4:1.
The ratio indicates that a larger number of investors have placed bets on Bitcoin's price increase (calls) compared to the potential price decrease (puts).
“These options were almost certainly part of the move to new bitcoin highs today,” Seifert wrote, referring to bitcoin's rise to $94,041 on Tuesday.
Eric Balchunas, senior ETF analyst at Bloomberg, described the $1.9 billion trading volume on the first day as “unheard of” for any options trade in an ETF.
“For context, BITO made $363 million over four years,” Balchunas wrote. XReferring to ProShares' Bitcoin Futures ETF.
Initially, approximately 73,000 options contracts were traded. 60 minutesplacing IBIT among the top 20 inactive index options on opening day.
Grayscale's launch comes a year after his big legal victory on the SEC. Last August, the US Court of Appeals ruled that the SEC rejected Greyscale's application to convert the Bitcoin Trust into a spot ETF.
The decision was a reversal of crypto ETFs challenging regulatory opposition that had stalled their approval for nearly a decade.
Edited by Sebastian Sinclair.
Daily Debrief Newspaper
Start every day with top news stories, plus original features, podcasts, videos and more.
