Insurance Options for BlackRock's Bitcoin ETF Now More Costly than Bullish Investments
Recent market analysis shows a shift in sentiment towards BlackRock's Bitcoin ETF, with downside protection becoming pricier relative to bullish options.
Key Takeaways:
- On Thursday morning, a report indicated a bullish-to-neutral shift in market sentiment regarding BlackRock’s Bitcoin ETF.
- Market conditions turned slightly bearish by day’s end, resulting in a positive put-call skew measurement of 0.2%.
- The price of IBIT decreased by 1.32%, closing at $59.99, as reported by TradingView.
Earlier on Thursday, CoinDesk reported a noteworthy change in the sentiment of the options market linked to BlackRock’s spot bitcoin ETF. However, throughout the day, this sentiment shifted further towards bearishness.
According to data from Market Chameleon, the one-year put-call skew, which indicates how the market is pricing in volatility risk for put options, turned slightly positive to 0.2%.
In simpler terms, the close of the trading day showed protective put options that were at a slight premium compared to calls, indicating a renewed bearish outlook. IBIT fell by 1.32% to $59.99 on Thursday and saw a net inflow of $125 million, marking the lowest single-day inflow since May 13, based on data from SoSoValue.
