Grayscale Investments plans to launch options trading on its Bitcoin ETFs on November 20, following the successful debut of options on BlackRock's iShares Bitcoin Trust (IBIT), which saw nearly $2 billion in trading volume on its first day. This unprecedented activity contributed to Bitcoin reaching a new all-time high. Grayscale aims to enhance the ecosystem around its US-listed Bitcoin ETPs by offering options trading on the Grayscale Bitcoin Trust (GBTC) and the Bitcoin Mini Trust. The Options Clearing Corporation's approval of Bitcoin ETF options prompted Grayscale to update its prospectus for a Bitcoin Covered Call ETF. Bloomberg's ETF analyst Seyffart highlighted Grayscale's swift response to the OCC's clearance. The debut of BlackRock's IBIT options involved 354,000 contracts, with a significant call-to-put ratio, indicating strong investor confidence in Bitcoin's price increase. The market rally was further fueled by traders buying options and market makers purchasing the spot ETF to hedge trades.

Cryptocurrency giant Grayscale Investments plans to introduce options trading on its spot Bitcoin ETFs on Nov. 20 as the debut of options on BlackRock’s spot Bitcoin EFT saw huge volumes.Options tied to BlackRock’s iShares Bitcoin Trust (IBIT) saw almost $2 billion in notional exposure traded on day one, a feat some analysts described as “unheard of” for those metrics. This record-breaking activity propelled Bitcoin to a new all-time high.Grayscale To Roll Out Options TradingGrayscaleannouncedon X that it would launch options trading on the Grayscale Bitcoin Trust (GBTC) and the Bitcoin Mini Trust to“further [develop] the ecosystem around our US-listed Bitcoin ETPs.”After the Options Clearing Corporation’s (OCC) approval of Bitcoin ETF options, Grayscale swiftly submitted an updated prospectus for its Bitcoin Covered Call ETF on January 11.Bloomberg’s ETF analyst Seyffart noted the speed of Grayscale’s filing following the OCC’s clearance,statingon Tuesday that the asset manager was “wasting no time.”“They’ve filed an updated prospectus for their Bitcoin Covered Call ETF,” Seyffart posted on X. “The fund will offer exposure to $GBTC & $BTC while writing &/or buying options contracts on Bitcoin ETPs for income.”Grayscale’s move follows the remarkable debut of BlackRock’s IBIT options, which racked up roughly $1.9 billion in notional exposure traded on its first day.Seyffartrevealedthat 354,000 contracts were exchanged, including 289,000 calls and 65,000 puts, representing a 4.4:1 call-to-put ratio. The ratio suggests that a vast majority of investors placed bets on Bitcoin’s price upsurge (calls) compared to those hedging against a potential price correction (puts).“These options were almost certainly part of the move to the new Bitcoin all-time highs today,” Seyffart summarized, referring toBitcoin’s jump to $94,040on Tuesday.Ex-CNBC Africa host Ran Neuner alsobelievesthat the debut of the IBIT options on Nasdaq triggered the market rally.“As traders buy these options, market makers buy the spot ETF to hedge the trade,” he posited. “The result is huge net buying of the ETF that causes huge net buying in spot BTC.”

Grayscale to Launch Bitcoin ETF Options Following BlackRock's Record Trading Volume

Grayscale to Launch Bitcoin ETF Options Following BlackRock's Record Trading Volume