{"id":3057,"date":"2024-11-21T04:32:32","date_gmt":"2024-11-21T04:32:32","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=3057"},"modified":"2024-11-21T04:32:32","modified_gmt":"2024-11-21T04:32:32","slug":"blackrocks-bitcoin-etf-options-record-historic-day-1-recap","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=3057","title":{"rendered":"BlackRock\u2019s Bitcoin ETF Options Record Historic Day 1: Recap"},"content":{"rendered":"
\n

BlackRock\u2019s Bitcoin ETF options made a historic debut, recording nearly $1.9 billion in notional value traded on the first day. Jeff Park, Head of Alpha Strategies at Bitwise Invest, shared his detailed observations on X , highlighting key takeaways from the inaugural trading day.<\/p>\n

\u201cToday marks the historic Day 1 of BTC ETF options launch. It did not disappoint, with over $1.86Bn in notional traded!\u201d Park exclaimed<\/a>. He provided a thread outlining the top 10 most interesting observations he made during the day.<\/p>\n

BlackRock\u2019s Historic Bitcoin ETF Options Day 1<\/h2>\n

Park noted that the market quickly established a \u201cvolatility smile\u201d by 9:45 AM, which persisted and widened as the day progressed. \u201cIn fact, the smile got even wider throughout the day, finishing with higher wings by EoD,\u201d he observed.<\/p>\n

Analyzing the BVIV Index from Volmex Finance, Park highlighted that the implied volatility (IV) movements did not align predictably with Bitcoin\u2019s price trajectory. \u201cMore interestingly, it did NOT match the upward sloping BTC price movement (then down) in a predictable way,\u201d he commented.<\/p>\n

The most heavily traded contract was the 01\/17\/24 C55 call option, exceeding 40,000 contracts. Park pointed out that this contract had already surpassed the position limit of 25,000. \u201cAs I shared yesterday, the 25k limit is too small relative to the deep liquidity IBIT has demonstrated over the months,\u201d he stated.<\/p>\n

Park was particularly intrigued by the 12\/20\/24 C100 call option, which he described as \u201ca true lottery ticket.\u201d Trading at an implied volatility of 105% and with a delta of just 3%, this option saw heavy volume early in the trading day. \u201cThe implied vol cleared at 105%. Even more interesting was how heavy the volume was at the first hour of the market open. It means a serious investor was loading it up at 10AM, and the price steadily increased with vol getting bid up. This was likely the been the biggest vega opportunity of the day,\u201d he explained.<\/p>\n

The overall put\/call ratio stood at approximately 0.23, indicating a strong preference for call options over puts. \u201cHowever, what is even more interesting is if you segment it by Expiry Date,\u201d Park noted. Longer-dated expiries, such as the January 2026\/2027 contracts, exhibited an even lower put\/call ratio of 0.08. \u201cThat means there is roughly a 10x imbalance for upside,\u201d he emphasized, highlighting a extremely bullish sentiment.<\/p>\n

Contrary to some expectations, MicroStrategy<\/a>\u2018s (MSTR) options trading remained robust despite the launch of IBIT options. \u201cMSTR\u2019s vol decoupled with Bitcoin meaningfully in the last hour, where it closed even higher than where we started in the day,\u201d Park observed. \u201cMSTR is in its own league,\u201d he concluded, indicating that the company\u2019s stock continues to attract its own distinct investor base.<\/p>\n

Looking ahead, Park mentioned the upcoming launch of BITB options. \u201cIt will be another option chain alongside IBIT<\/a> and others for investors to consider before buying\/selling and determining where the best value may lie,\u201d he said. Park expressed conviction that non-institutional trading would gravitate toward non-IBIT ETFs, potentially offering more opportunities for professional retail investors.<\/p>\n

Bloomberg ETF expert James Seyffart provided<\/a> additional insights, confirming the monumental trading volumes. \u201cFinal tally of IBIT\u2019s 1st day of options is just shy of $1.9 billion in notional exposure traded via 354k contracts. 289k were Calls & 65k were Puts. That\u2019s a ratio of 4.4:1,\u201d Seyffart shared on X. He suggested that these options likely contributed to Bitcoin reaching new all-time highs during the day.<\/p>\n

When crypto analyst James Van Straten queried about the notional target and position limits, Seyffart acknowledged the constraints. \u201c25k position limit is likely a weight on volume and Open Interest for [the] foreseeable future,\u201d he responded. Regarding the rationale behind the limits, Seyffart explained, \u201cNot standard\u2014no. But the SEC and CFTC were definitely worried about market manipulation<\/a> etc. Was part of the requirement to get approved!\u201d<\/p>\n

At press time, BTC traded at $93,404.<\/p>\n

\"Bitcoin<\/div>\n","protected":false},"excerpt":{"rendered":"

BlackRock\u2019s Bitcoin ETF options made a historic debut, recording nearly $1.9 billion in notional value traded on the first day. Jeff Park, Head of Alpha Strategies at Bitwise Invest, shared his detailed observations on X , highlighting key takeaways from the inaugural trading day. \u201cToday marks the historic Day 1 of BTC ETF options launch. […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-3057","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/3057","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=3057"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/3057\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=3057"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=3057"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=3057"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}