BlackRock Bitcoin ETF Options Drive to New Historical High of 94K, Grayscale Follows Suit to Capitalize

Grayscale Investments is planning to launch Bitcoin ETF options, introducing a new investment tool to the market. This move comes shortly after BlackRock's Bitcoin ETF, IBIT, set a trading record, highlighting the increasing interest in crypto assets.

Riding the Wave, Grayscale Accelerates Options Product Launch

Following the huge success of BlackRock's Bitcoin ETF options, Grayscale announced that it will introduce options trading on its spot Bitcoin ETF this Wednesday. The plan covers GBTC Grayscale Bitcoin Trust and BTC Bitcoin Mini Trust to further develop Grayscale's ecosystem of exchange-traded products in the U.S.

Grayscale stated that this move aims to utilize covered call strategies, allowing for the trading of Bitcoin ETP options contracts while holding Bitcoin or GBTC as collateral to generate profits.

OCC Quickly Responds to Regulatory Green Light

Following the approval of Bitcoin ETF options by the U.S. options clearing company OCC, Grayscale promptly updated its "Bitcoin Covered Call ETF" on January 11th with a public statement.

Bloomberg ETF analyst James Seyffart emphasized Grayscale's swift action and stated on social media, "They quickly filed an updated prospectus showing a joint strategy with GBTC and BTC, generating income through options trading."

BlackRock's Impressive First-Day Trading Sparks Market Enthusiasm

Grayscale's launch closely followed the unprecedented first-day trading performance of BlackRock's iShares Bitcoin Trust IBIT. Data shows that IBIT options had a nominal exposure of nearly $1.9 billion on the first day, with a total of 354,000 contracts traded, including 289,000 call options and 65,000 put options.

This data indicates investors' optimism about Bitcoin's price surge, with a call-to-put ratio of 4.4:1.

Bloomberg senior ETF analyst Eric Balchunas referred to this trading volume as "unprecedented" and noted, "In comparison, ProShares' Bitcoin futures ETF BITO only reached $363 million on its first day, despite being on the market for four years."

Bitcoin Price Soars to Historic High of $94K

As IBIT options trading boosts market activity, the price of Bitcoin surged to a new high of $94,041 on Tuesday. Seyffart commented, "These options trades are almost certainly a major driver behind Bitcoin hitting new highs."

The consecutive actions of Grayscale and BlackRock indicate a new phase in the cryptocurrency market, with investor enthusiasm and relaxed regulations leading to more innovative products. As competition intensifies, it remains to be seen if Grayscale can stand out in this wave of excitement.