Protection against price drops in BlackRock’s spot bitcoin (BTC) exchange-traded fund (ETF), is now at its priciest since the early April market slide.
On Monday, the spread between implied volatilities (IV) for 25-delta puts and 25-delta calls for the iShares Bitcoin Trust ETF (IBIT) rose to 4.4, the widest since April 10, according to data source Market Chameleon.
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In other words, put options, which insure the buyer against price drops in the underlying asset, traded at a premium of 4.4 IV relative to calls, or bullish bets. It’s a sign investors are increasingly seeking protection against price declines, reflecting growing concerns about IBIT’s near-term outlook.
IBIT gapped lower at $65.72 on Monday, tracking overnight losses in the spot bitcoin market. At press time, the ETF shares were trading at $65.44, down 1.51% for the day, having reached a record high of $69.89 last week, according to data source TradingView.
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