Investors are positioning themselves to benefit from a continued rally in the price of Bitcoin on the first day of options trading in the iShares Bitcoin Trust, the biggest exchange-traded fund focused on the cryptocurrency.
Around midday on Tuesday, about 100,000 options on the ETF, which trades with the ticker IBIT, had changed hands. Calls, giving holders the right to buy the fund at a set price, accounted for 85% of the volume.
The ETF, which totals more than $40 billion, was up 1.6% at $53 after hitting a new high earlier in the session. Bitcoin rose about 1.6% to $92,800. The IBIT ETF totals more than $40 billion.
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The IBIT options, the first available on a Bitcoin ETF, mature in mid December and mid January. There have been some notable trades of 10,000 contracts in the January $53 calls, 15,000 contracts for the January $55 call, and 10,000 contracts in the December $65 calls.Â
Trading in IBIT is the 15th highest among all listed equity options, according to Chris Murphy, co-head of derivatives strategy at Susquehanna International Group.Â
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There has been much more options trading in such stocks as Nvidia and Tesla, which are normally among the most actively traded option contracts. As of near midday, 1.7 million Nvidia contracts and 1.6 million Tesla contracts had changed hands.
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