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Grayscale Investments, a crypto asset manager, plans to launch options trading on their spot Bitcoin ETFs Wednesday after noticing the initial signs of solid investor interest in such products.
The announcement follows a record-breaking day for BlackRock’s iShares Bitcoin Trust. Bitcoin A new record high.
Grayscale will launch Options trading GBTC BTC and BTC Mini Trust (Grayscale Bitcoin Trust). “further [develop] the ecosystem around our US-listed Bitcoin ETPs,” I said.
The Options Clearing Corporation (OCC) Approval You can also find out more about the following: Bitcoin ETF options, Grayscale quickly You can find out more about this by clicking here. On January 11, 2019, the Bitcoin Covered Call Fund released an updated prospectus.
The tooling aims to generate income by employing a covered call strategy—writing and buying options contracts on Bitcoin exchange-traded products (ETPs) while holding Bitcoin or GBTC as collateral.
Seyffart, a Bloomberg ETF analyst, drew attention to Grayscale’s rapid response after the OCC cleared the clearance. Twitter Tuesday the asset manager was “wasting no time.”
“They've filed an updated prospectus for their Bitcoin Covered Call ETF,” Seyffart tweeted. “The fund will offer exposure to $GBTC & $BTC while writing &/or buying options contracts on Bitcoin ETPs for income.”
Grayscale, the first ever grayscale color palette, follows BlackRock IBIT On its first day, options trading reached nearly $1.9 Billion in terms of exposure notional.
Seyffart revealed details about XObserving that 354,000 contracts have been exchanged, which includes 289,000 calls, and 65,000 put, the ratio of call to put is 4.4:1.
The ratio shows a much higher number of investors who hedged against the possibility of a price decline (puts), compared with those who placed bets for Bitcoin’s price to rise.
“These options were almost certainly part of the move to the new Bitcoin all-time highs today,” Seyffart noted the Bitcoin surge on Tuesday to $94,041 dollars.
Bloomberg’s senior ETF analysts Eric Balchunas and Michael Balchunas have described the $1.9bn trading volume as “unheard of” Options trading in an ETF on its first day.
“$For context, BITO did $363 million, and that’s been around for four years,” Balchunas wrote on X, referring to ProShares' futures Bitcoin ETF.
In the first month, approximately 73,000 option contracts were traded. 60 MinutesIBIT ranked among the top 20 non-index trading options on its first day.
Grayscale launches a year following its biggest legal win SEC. The U.S. Court of Appeals in August ordered the SEC, after initially denying Grayscale’s request to convert its Bitcoin Trust to a spot ETF, to reconsider its decision.
This decision was a turning-point for crypto ETFs. It challenged regulatory resistance which had held up their approval for almost a decade.
Sebastian Sinclair is the editor
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