Grayscale follows the trend by launching options for the $94K historic high driven by the BlackRock Bitcoin ETF
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 cryptocurrency assets.
Following the trend, Grayscale is accelerating the launch of its options products. After the tremendous success of BlackRock’s Bitcoin ETF options, Grayscale announced that it will introduce options trading on its existing Bitcoin ETF this Wednesday. This plan will cover GBTC (Grayscale Bitcoin Trust) and BTC (Bitcoin Mini Trust), further developing Grayscale’s Bitcoin ETP (Exchange Traded Product) ecosystem listed in the United States.
Grayscale states that this move is aimed at utilizing covered call strategies to generate income through trading options contracts on Bitcoin ETP, with Bitcoin or GBTC held as collateral.
In response to the regulatory approval of Bitcoin ETF options by the Options Clearing Corporation (OCC) in the United States, Grayscale promptly updated the prospectus for its “Bitcoin Covered Call ETF” on January 11.
Bloomberg ETF analyst James Seyffart emphasized Grayscale’s swift action, stating on social media, “They quickly submitted an updated prospectus, showing a combined strategy of GBTC and BTC, while realizing income through options trading.”
Grayscale’s launch follows BlackRock’s iShares Bitcoin Trust (IBIT) unprecedented first-day trading performance. According to data, IBIT options had a nominal open interest of nearly $1.9 billion on the first day of trading, with a total of 354,000 contracts traded, including 289,000 call options and 65,000 put options.
This data demonstrates investors’ optimistic sentiment towards Bitcoin’s price increase, with a call-to-put ratio of 4.4:1.
Bloomberg Senior ETF analyst Eric Balchunas called this trading volume “unprecedented” and noted, “In comparison, ProShares’ Bitcoin Futures ETF (BITO) reached only $363 million on its first day, despite being launched for four years.”
As IBIT options trading drives market activity, Bitcoin’s price surged to a new high of $94,041 on Tuesday. Seyffart commented, “These options trades are almost certainly the main driver behind the new Bitcoin price highs.”
The consecutive actions of Grayscale and BlackRock indicate that the cryptocurrency market has entered a new stage, with investors’ enthusiasm and relaxed regulations bringing more innovative products to the market. As competition intensifies, it remains to be seen whether Grayscale can stand out in this wave of enthusiasm.
