Grayscale Investments is planning to launch BTC ETF options, adding a new investment vehicles to the market. This move comes shortly after BlackRock BTC ETF (IBIT) set a trading record, highlighting the increasing interest in encryption assets.
Riding the wave, Grayscale accelerates the launch of options products
After the huge success of BlackRock's BTC ETF, Grayscale announced that it will introduce options trading on its SpotBTC ETF this Wednesday. The plan covers GBTC (Grayscale Bitcoin Trust) and BTC (Bitcoin Mini Trust) to further develop Grayscale's BTC ETP ecosystem listed in the US exchange market.
Grayscale stated that this move is to utilize covered call strategies to generate returns by trading BTC ETP options contracts while holding BTC or GBTC as collateral.
OCC quickly responds to regulatory green light
After the Options Clearing Corporation (OCC) approved the BTC ETF option in the United States, Grayscale immediately updated its prospectus for the "BTC Covered Call" ETF on January 11.
Bloomberg ETF analyst James Seyffart emphasized Grayscale's swift action and pointed out on social media, 'They quickly submitted an updated prospectus showing the joint strategy of GBTC and BTC, while realizing profits through Options trading.'
BlackRock's first day of trading was impressive, with market enthusiasm soaring.
Grayscale's launch closely followed the unprecedented first-day trading performance of BlackRock iShares Bitcoin Trust (IBIT). According to data, IBIT options achieved 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 shows investors' optimistic sentiment about the rise in the price of Bitcoin, with a call-to-put ratio of 4.4:1.
Bloomberg senior ETF analyst Eric Balchunas called this trading volume "unprecedented" and pointed out, "By comparison, ProShares' Bit Bitcoin Futures ETF (BITO) only reached $363 million on its first day, despite being launched for four years."
BTC price soared to a historic high of 94K
With the increase in market activity driven by IBIT's options trading, the price of BTC broke through a new high of $94,041 on Tuesday. Seyffart commented, "These options trades are almost certainly the main driver of the new high in BTC prices."
The continued actions of Grayscale and BlackRock indicate that the encryption asset market has entered a new stage. The enthusiasm of investors and the relaxation of regulation have brought more innovative products to the market. With competition intensifying, it remains to be seen whether Grayscale can stand out in this wave of enthusiasm.
This article Bel BTC ETF Options push 94K to a new high in history, and Grayscale follows up and launches it for the first time appeared on Chain News ABMedia.
The content is for reference only, not a solicitation or offer. No investment, tax, or legal advice provided. See Disclaimer for more risks disclosure.
BlackRock BTC ETF Options drive to a new high of 94K, Grayscale follows up while it's hot
Grayscale Investments is planning to launch BTC ETF options, adding a new investment vehicles to the market. This move comes shortly after BlackRock BTC ETF (IBIT) set a trading record, highlighting the increasing interest in encryption assets.
Riding the wave, Grayscale accelerates the launch of options products
After the huge success of BlackRock's BTC ETF, Grayscale announced that it will introduce options trading on its SpotBTC ETF this Wednesday. The plan covers GBTC (Grayscale Bitcoin Trust) and BTC (Bitcoin Mini Trust) to further develop Grayscale's BTC ETP ecosystem listed in the US exchange market.
Grayscale stated that this move is to utilize covered call strategies to generate returns by trading BTC ETP options contracts while holding BTC or GBTC as collateral.
OCC quickly responds to regulatory green light
After the Options Clearing Corporation (OCC) approved the BTC ETF option in the United States, Grayscale immediately updated its prospectus for the "BTC Covered Call" ETF on January 11.
Bloomberg ETF analyst James Seyffart emphasized Grayscale's swift action and pointed out on social media, 'They quickly submitted an updated prospectus showing the joint strategy of GBTC and BTC, while realizing profits through Options trading.'
BlackRock's first day of trading was impressive, with market enthusiasm soaring.
Grayscale's launch closely followed the unprecedented first-day trading performance of BlackRock iShares Bitcoin Trust (IBIT). According to data, IBIT options achieved 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 shows investors' optimistic sentiment about the rise in the price of Bitcoin, with a call-to-put ratio of 4.4:1.
Bloomberg senior ETF analyst Eric Balchunas called this trading volume "unprecedented" and pointed out, "By comparison, ProShares' Bit Bitcoin Futures ETF (BITO) only reached $363 million on its first day, despite being launched for four years."
BTC price soared to a historic high of 94K
With the increase in market activity driven by IBIT's options trading, the price of BTC broke through a new high of $94,041 on Tuesday. Seyffart commented, "These options trades are almost certainly the main driver of the new high in BTC prices."
The continued actions of Grayscale and BlackRock indicate that the encryption asset market has entered a new stage. The enthusiasm of investors and the relaxation of regulation have brought more innovative products to the market. With competition intensifying, it remains to be seen whether Grayscale can stand out in this wave of enthusiasm.
This article Bel BTC ETF Options push 94K to a new high in history, and Grayscale follows up and launches it for the first time appeared on Chain News ABMedia.