This is what “Wall Street crypto” looks like: IBIT options went vertical as Bitcoin hit $60k intraday

Bitcoin’s recent price drop to $60,000 coincided with unprecedented options trading volume for BlackRock’s iShares Bitcoin Trust (IBIT), signaling a shift in how market participants manage risk. Over 2.33 million contracts traded, alongside $10 billion in IBIT turnover, demonstrating that fear and hedging are increasingly flowing through regulated US-listed products. This contrasts with the past, where offshore perpetual swaps dominated volatility expression. The surge in IBIT options activity reflects a combination of directional holders hedging positions, volatility traders capitalizing on price swings, and basis/relative-value players adjusting their exposures. The record volume provides insights into institutional activity and risk management strategies, offering a valuable gauge for future market events. This trend signifies the growing integration of Bitcoin into traditional finance, where institutional investors are using familiar tools like options to manage risk and express views on volatility, marking a new era of “Wall Street crypto”. Monitoring IBIT options activity can now serve as an early warning system for potential risk events.

(Source：CryptoSlate)