IBIT, Took the Lead in Bitcoin ETFs

A New Era Begins in the Bitcoin ETF Market

iShares Bitcoin Trust (IBIT) controls 57.5% of the Bitcoin ETF assets under its management. This rate shows a significant increase from 49% in October 2024.

ETF options, launched in November 2024, have transformed the structure and volatility profile of the Bitcoin market. According to a report prepared by analyst James Check and Unchained, the volume of options trading ranges between 4-5 billion dollars daily.

Options Market and Investment Flows

Since IBIT became operational in January 2024, it has seen a total net inflow of 61 billion dollars. This situation has made IBIT one of the most successful ETFs of all time. Thanks to options, IBIT attracted 32.8 billion dollars in investments in just the last 18 months. Its competitors, on the other hand, remained almost stable during this period.

The report emphasizes that options are a dominant derivative instrument in terms of open interest. With over 90 billion dollars in open interest, they surpass the futures market. For example, Fidelity's FBTC ETF stands at approximately 25 times smaller than IBIT's open interest size, holding only 1.3 billion dollars in open interest.

Market Volatility and Future Expectations

Institutional investors hold ETFs in their 13F filings, which are required by the SEC for investment managers with over 100 million dollars in assets. This provides other investors with the opportunity to hedge volatility using short or arbitrage methods through the options market.

According to the data in the report, Bitcoin's volatility profile has significantly changed in this cycle. ETFs and options markets are highlighted as one of the fundamental dynamics of this change. The report states that the addition of options on top of spot ETFs is a largely uncommented but significant change in Bitcoin's recent market structure.