Bitcoin (BTC) reached new all-time highs on Tuesday, breaking its previous record, as the launch of options trading on spot Bitcoin exchange-traded funds (ETFs) stirred up significant market activity.
At press time, Bitcoin was trading above $94,000, marking a 4% increase over the last 24 hours and surpassing its previous high of $93,450 set on November 13. The CoinDesk 20, an index of the top 20 cryptocurrencies by market capitalization (excluding stablecoins, memecoins, and exchange tokens), rose by about 0.3%. Among its members, Hedera (HBAR) was the biggest gainer, up 9%, while Polkadot (POL) saw the largest decline, dropping 0.8%.
The introduction of options contracts on spot Bitcoin ETFs is seen as a key moment for both retail and institutional investors. Unlike the previously available Bitcoin options offered by CME, these spot Bitcoin ETF options allow investors to buy or sell Bitcoin at specific prices within a set time frame, which is expected to enhance market participation and liquidity.
Noelle Acheson, former head of market insights at Genesis, explained that a more sophisticated onshore derivatives market will boost investor confidence, attracting both new investors and a wider range of trading strategies. “Institutions will be drawn to the increased flexibility and higher-volume exposure that options provide,” she noted. “Options offer deeper granularity in expressing investment opinions and can amplify exposure with lower upfront costs, making them especially appealing to large institutional players.”
As of now, only BlackRock’s IBIT, one of the 11 U.S.-based spot Bitcoin ETFs, offers options, and the demand has been strong. Bloomberg ETF analyst Eric Balchunas reported that options volume on IBIT reached several hundred million on its first day, with most contracts being calls, reflecting investor optimism about Bitcoin’s price continuing to rise.
