Key Insights:
- BlackRock Bitcoin ETF options trading hits 25,000 contract limit, with Nasdaq proposing 10 surge.
- The proposed increase in IBIT option limits could accelerate a shift in crypto derivatives flows from offshore venues like Deribit to U.S.
- BlackRock’s iShares Bitcoin Trust (IBIT) has become the fifth most actively traded ETF in the options market, trailing only SPY, QQQ, IWM, and GLD.
BlackRock Bitcoin ETF (IBIT) continues to hit news milestones and has recently emerged as one of the most favoured exchange-traded fund (ETFs) for options trading, after the Gold ETF. This comes as IBIT scoops another 1,249 Bitcoins from the open market, with its share price rallying past $67 on Monday. Through IBIT, BlackRock has already outclassed several traditional S&P 500 ETFs over the past year.
BlackRock Bitcoin ETF Options Trading on Rise
Options on the iShares Bitcoin Trust (IBIT) have quickly risen to become some of the most actively traded across the entire ETF market. Just eight months after their launch, IBIT options now rank fifth in overall ETF options activity, trailing only SPDR S&P 500 ETF (SPY), Invesco QQQ (QQQ), iShares Russell 2000 ETF (IWM), and SPDR Gold Shares (GLD), reported ETF Store President Nate Geraci.
Despite a position limit of just 25,000 contracts, BlackRock Bitcoin ETF (IBIT) options have seen explosive growth in trading volume. This clearly highlights rising investor interest in Bitcoin-linked derivatives. It also shows accelerating institutional and retail adoption of Bitcoin exposure through regulated financial instruments.
In the latest development, Nasdaq index has raised the position limits on IBIT options from 25,000 to 250,000 contracts. The increase could mark a significant shift in crypto derivatives trading if approved. It could draw volume away from offshore platforms such as Deribit and toward U.S.-regulated traditional financial infrastructure, said VanEck Head of Digital Assets, Matthew Sigel.
BlackRock Bitcoin ETF Inflows Continue to Rise
Inflows into BlackRock’s iShares Bitcoin Trust (IBIT) continue despite slowing down from last week’s pace. On Monday, July 28, the net inflows into spot Bitcoin ETFs across all US issuers were $157 million, of which, $147 million alone was from BlackRock’s IBIT.
As a result, BlackRock scooped up another 1,249 Bitcoins, with IBIT total holdings now reaching $740K BTC. Furthermore, the daily trading volume for IBIT yesterday was a staggering $2.6 billion, making it one of the most-traded stocks on Nasdaq.
The total assets under management for iShares Bitcoin Trust (IBIT) are approaching closer to $100 billion. A Bitcoin price rally and inflows could get us to this milestone quickly.
Spot Bitcoin ETFs Record $71 Million in Weekly Inflows
In Week 29 of their second year, U.S.-listed spot Bitcoin ETFs posted a net inflow of $71 million, with total trading volume reaching $19 billion. The most-traded price during the week stood at $118,113, reflecting ongoing investor interest despite market volatility.
BlackRock’s iShares Bitcoin Trust (IBIT) again led inflows, adding $267 million. This marks the fund’s 15th consecutive week of positive flows.
While these Bitcoin ETF inflows continue, BTC price consolidates at around $119K. Market analysts remain hopeful for a price breakout, with targets of $140K and beyond. With Bitcoin ETF inflows and strong institutional demand, Bitcoin could finally stage a major breakout ahead.
Disclaimer
This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.
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