BlackRock’s Bitcoin ETF options brings in nearly $2b in trade on day one

  • Bitcoin hit a record of more than $94,000 following the launch of options contracts on BlackRock’s IBIT
  • 289,000 contracts were Calls and 65,000 were Puts, meaning investors were bullish on a Bitcoin price rise
  • Joe Constori said the market is bullish that Bitcoin’s price will reach $100,000 by the end of 2024

Options contracts on BlackRock’s iShares Bitcoin Trust (IBIT) saw “unheard-of” notional exposure levels, helping push Bitcoin to a record of over $94,000.

Taking to X, Bloomberg ETF analyst James Seyffart, said:

“Final tally of $IBIT’s 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’s a ratio of 4.4:1. These options were almost certainly part of the move to the new #Bitcoin all time highs today.”

Buying calls is bullish as investors only profit if the price of Bitcoin goes up. With the new options contract, investors can speculate on price movements by trading shares at predetermined prices.

Joe Constori, head of growth at Theya and institutional lead at the Bitcoin Layer, said on X that “TLDR; the market is bullish that Bitcoin’s price ends the year well over $100k.”

Bloomberg’s senior ETF analyst Eric Balchunas added:

“$1.9b is unheard of for Day One. For context, $BITO did $363m and that’s been around for four years. And also this is with 25,000 contract position limits.”

Increasing institutional interest

The launch of BlackRock’s options contracts comes as institutional interest in Bitcoin rises. With the IBIT options, investors can gain exposure to new avenues of investment while managing their risk through the call and put options without owning the underlying asset.

In January, the US Securities and Exchange Commission (SEC) approved the first 11 spot Bitcoin exchange-traded fund (ETFs). Since then, the market has grown with BlackRock leading the way.

At the end of October, BlackRock’s IBIT reached $30 billion in net assets in a record 293 days. Two weeks later, it reached $40 billion in net assets in 211 days, showcasing rising interest in crypto investments.

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Elixir, Securitize launch DeFi vaults for BlackRock’s BUIDL

  • Elixir and Securitize have partnered to unlock $1 billion in tokenized real-world assets (RWA) to DeFi.
  • The platforms have launched DeFi vaults for BlackRock’s BUIDL fund, with Elixir’s decentralized dollar deUSD core to the project.

Elixir, the network powering the decentralized yield-bearing synthetic dollar deUSD, has teamed up with BlackRock’s tokenization partner Securitize to launch a liquid staking token for tokenized securities.

The partnership seeks to bring billions of dollars in gated capital to the decentralized finance market, Elixir said in an announcement on Nov. 19.

Elixir, Securitize launch DeFi vaults for BUIDL

According to the platform, users will leverage deUSD to access Blackrock’s tokenized fund BUIDL and other RWA assets for DeFi across the market. deUSD will be the primary currency of the “deUSD RWA Institutional Program.”

In a comment, Elixir founder & chief executive officer Philip Forte said:

“Elixir is excited to partner with Securitize to bring this 0 to 1 innovation to DeFi. The Elixir Network is a purpose-built stack powering exchange orderbooks and deUSD (“Decentralized US Dollar”). For the first time ever, holders of tokenized real-world assets can natively use their assets onchain in DeFi, accessing unified liquidity via deUSD.”

The collaboration seeks to use deUSD to unlock yield-opportunities for the over $1 billion real world assets that Securitize has issued across DeFi. The offering is via the sToken and the new ERC-4626 vault technology in partnership with Elixir’s “deUSD RWA Institutional Program.”

“With the launch of this innovative sToken functionality, Securitize is enabling a new frontier in DeFi by making it possible to leverage any Real World Asset token issued using the DS Protocol,” Securitize co-founder & chief executive officer Carlos Domingo said in a statement.

“This functionality not only provides liquidity options but also bridges the gap between traditional assets and the digital asset economy, offering investors more ways to manage and optimize their portfolios,” he added.

The RWA onchain market is currently valued at over $13 billion, while tokenized US Treasuries account for over $2.4 billion. On Nov. 19, Bitfinex Securites announced the launch of the first tokenized US T-bill in El Salvador.

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