Bitcoin Jumps 6% as Vanguard Ends Bitcoin ETF Ban
BlackRock’s IBIT options have become the ninth largest in the U.S. market, surpassing gold ETFs and tech stocks, underscoring Bitcoin’s appeal as a macro asset despite recent price declines.
Bitcoin surged 6% to $91,876.89 after Vanguard lifted its ban on Bitcoin ETFs, driving $3.7 billion in daily volume for BlackRock’s iShares Bitcoin Trust (IBIT). IBIT now holds $66.3 billion in net assets and has also gained prominence in derivatives markets, with IBIT options debuting in November 2024 and quickly climbing to the ninth largest open interest in the U.S. at over 7.7 million contracts. These options have surpassed gold ETF and major tech stock options, reflecting increased institutional interest in Bitcoin as a macro asset. BloFin Research noted IBIT options’ strong position rivaling VIX and SPY when combined with Deribit’s open interest. Bitcoin has seen $732 billion in net new capital this cycle despite an 18% price drop in the past three months.
- Bitcoin ETF: An exchange-traded fund that tracks the price of Bitcoin, allowing investors exposure without directly holding the cryptocurrency.
- IBIT: BlackRock’s iShares Bitcoin Trust, a Bitcoin-focused ETF allowing indirect investment in Bitcoin.
- Open Interest: The total number of outstanding derivative contracts, such as options or futures, that have not been settled.