IBIT’s Options Market Fuels BTC ETF Dominance

IBIT, the iShares Bitcoin Trust, now controls 57.5% of bitcoin ETF assets, significantly increasing its market influence since the launch of ETF options in November 2024. Options trading volumes soar between $4 and $5 billion daily, surpassing futures markets. IBIT has attracted $32.8 billion in inflows since options commenced trading, while competition has stagnated. The use of options has reshaped bitcoin's market structure, providing traders with powerful tools for hedging and volatility management. Analyst reports highlight options as the primary derivatives instrument in the bitcoin market, with open interest exceeding $90 billion. This shift indicates a meaningful change in bitcoin's historical volatility profile, suggesting that options markets now play a crucial role in influencing price behavior. The report emphasizes the transformative impact of ETF options over the past year as essential drivers of market dynamics.

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