Protection Costs for BlackRock’s Bitcoin ETF Reach Highest Level Since April
Protection against price drops in BlackRock's spot bitcoin exchange-traded fund (ETF) is at its highest since early April.
- The spread between implied volatilities for 25-delta puts and calls for the iShares Bitcoin Trust ETF (IBIT) rose to 4.4.
- This indicates put options, which protect against price declines, are trading at a premium.
- Investors are increasingly seeking protection, signaling concerns about IBIT's near-term outlook.
- IBIT opened lower at $65.72, following losses in the spot bitcoin market.
- As of now, ETF shares are trading at $65.44, down 1.51% for the day, after reaching $69.89 last week.