BlackRock Bitcoin ETF Put Options See Trading Surge as Income-Seeking Strategies Gain Popularity
Put options linked to BlackRock’s spot bitcoin ETF (IBIT) experienced a significant jump in volume, with traders seemingly employing cash-secured put strategies to capture premium income amid IBIT’s strong performance.
On Friday, more than 13,000 contracts of $30 strike puts expiring in May 2025 traded hands, alongside over 10,000 contracts for $35 strike puts maturing in January 2026. This occurred as IBIT rose 1.7% to close at $57.91, data from Amberdata showed.
Market participants suggest the activity doesn’t reflect bearish positioning but rather a strategic play to secure favorable entry points. “These volumes point toward cash-secured put selling, where traders profit from premiums while potentially accumulating IBIT at a discount,” said Greg Magadini, Amberdata’s director of derivatives.
Cash-secured puts allow traders to earn upfront premiums while agreeing to purchase IBIT at the strike price if the ETF trades below that level before expiry. For example, sellers of the $35 strike put expiring January 2026 will keep the premium if IBIT stays above $35, but must purchase the ETF if the price drops below the strike.
Calls Still Dominate as Bullish Sentiment Persists
Despite the rise in put activity, IBIT call options remain relatively more expensive, with positive call-put skews highlighting continued bullish expectations. This aligns with broader market sentiment seen in bitcoin options trading on platforms like Deribit.
Institutional Demand Fuels IBIT Inflows
IBIT saw robust inflows of $393 million on Friday, accounting for the bulk of the $428.9 million total inflows across all U.S.-listed spot bitcoin ETFs, according to data from Farside Investors.
The uptick in put option activity signals traders’ confidence in IBIT’s long-term potential, with investors strategically balancing income generation and discounted accumulation in anticipation of sustained growth.
