Bitcoin price hits $94K as BlackRock ETF options debut with $1.9B on Nasdaq
Bitcoin hits $94,000 milestone as Nasdaq records strong trading volume for ETF options
The crypto world has recorded another milestone as options for BlackRock's iShares Bitcoin Trust (IBIT) and Bitwise Bitcoin ETFs began trading on major exchanges like Nasdaq.
On its debut, Nasdaq recorded $1.9 billion in notional exposure from IBIT options, a strong start that emphasizes investor appetite for these instruments.
A total of 354,000 contracts were traded, with call options dominating at 289,000, a clear sign that the majority are betting on Bitcoin's price growth. This has led Bitcoin price to a fresh all-time high of $94,000. Analysts attribute this price action to the growing accessibility of derivatives like ETF options, which offer traders tools to hedge or leverage their positions in the market.
Bitcoin ETF options present opportunities for investors
Grayscale is also rolling out its ETF options, bringing more players into the mix. The SEC's recent approval of Bitcoin ETF options adds a new layer of trading opportunities for institutional and retail investors. Traders can hedge their Bitcoin investments, mitigating risks from sudden price swings. Additionally, call options allow investors to amplify gains during bullish trends, while put options provide downside protection.
These strategies are particularly attractive given Bitcoin's recent price rally, climbing nearly 30% since the US presidential election which in turn heightened interest in ETF options, consequently offering flexibility for various trading objectives.
Despite its strong debut, IBIT's $1.9 billion in first-day trading volume lags behind heavyweights like SPDR Gold Shares ($GLD), which managed $5 billion in a single day. However, its strong launch suggests Bitcoin ETF options have significant growth potential.
As more ETF options hit the market, traders and institutions are expected to explore these tools further. The combination of high trading volumes, strong inflows, and Bitcoin's record-breaking prices suggests the market is entering a new phase of maturity.
ETF inflows and low exchange supply fuel Bitcoin price outlook. This reduced supply on exchanges, an indication that holders are reluctant to sell, strengthens the case for continued price increases.
