- Bitcoin reaches record high of over $94,000 after options contracts on BlackRock's IBIT launch
- There were 289,000 buy contracts and 65,000 sell contracts, meaning that investors were optimistic about the rise in the price of Bitcoin.
- Joe Constori said the market is optimistic that Bitcoin will reach $100,000 by the end of 2024.
Options contracts on BlackRock's iShares Bitcoin Trust (IBIT) saw “previously unheard-of” levels of notional exposure, helping push Bitcoin to a record high of over $94,000.
took to XJames Seyphart, Bloomberg ETF analyst, said:
“The final first-day count of $IBIT options is just under $1.9 billion of notional exposure traded across 354,000 contracts. 289,000 were calls and 65,000 were puts. This ratio is 4.4:1. This is almost certainly Options were part of the move to new #Bitcoin all-time highs today.
Update: Final tally $IBITThe first day of options amounts to just $1.9 billion of notional exposure traded across 354,000 contracts. 289k were calls and 65k were puts. This ratio is 4.4:1. These options were almost certainly part of the transition to the new #Bitcoin All-time highs today pic.twitter.com/IN3s9hajJ2
– James Seyff (@JSeyff) November 19, 2024
Buying calls is bullish as investors only profit if the price of Bitcoin rises. With the new options contract, investors can speculate on price movements by trading stocks at predetermined prices.
said Joe Constori, Head of Growth at Theya and Institutional Leader at Bitcoin Layer X “TLDR; the market is bullish because the price of Bitcoin ended the year at over $100k.
Eric Balchunas, senior ETF analyst at Bloomberg, added:
“$1.9 billion on day one is unheard of. For context, $BITO made $363 million, and that's been around for four years. And that's also with 25,000 contract position limits.
An unheard-of $1.9 billion on the first day. For context, $ Beto He did $363 million and that was around for four years. This is also with a 25,000 contract position limit. However, $1.9 billion is not a large amount yet, for example $GLD I did $5 billion today, but give it a few more days/weeks. https://t.co/nAr2rracjb
– Eric Balchunas (@EricBalchunas) November 19, 2024
Increased institutional interest
The launch of BlackRock's options contracts comes as institutional interest in Bitcoin surges. With EBIT options, investors can gain exposure to new avenues of investing while managing their risk through call and put options without owning the underlying assets.
In January, the US Securities and Exchange Commission (SEC) issued a ruling The first 11 spot exchange-traded funds (ETFs) have been approved.). Since then, the market has grown, led by BlackRock.
At the end of October, BlackRock's IBIT was released Reached $30 billion net assets In a record 293 days. Two weeks later Reached $40 billion net assets In 211 days, which shows the growing interest in cryptocurrency investments.