IBIT Controls 57.5% of Bitcoin ETF Assets, Report Reveals
An analysis by James Check and Unchained highlights significant shifts in the Bitcoin market with the rise of bitcoin exchange-traded funds (ETFs), notably the iShares Bitcoin Trust (IBIT).
- Options have become the dominant derivatives instrument, surpassing futures with over $90 billion in open interest.
- Since its launch in January 2024, IBIT has attracted around $61 billion in net inflows within 18 months, becoming one of the most successful ETFs ever.
- The introduction of ETF options in November 2024 accelerated IBIT's dominance, drawing $32.8 billion in inflows while competitors stayed flat.
- IBIT now controls 57.5% of all bitcoin ETF assets under management, up from 49% in October 2024.
- Options open interest for IBIT stands at 40 cents per dollar of bitcoin held, vastly outpacing Fidelity's FBTC, which is 25 times smaller in options open interest.
- IBIT's activity rivals Deribit, the largest crypto options exchange, with daily trading volumes between $4 billion and $5 billion.
The report notes that 13F filings reveal institutional holdings in ETFs, enabling strategies like shorting or arbitrage for hedging volatility. It concludes that Bitcoin's volatility profile has changed substantially due to the influence of ETFs and their options markets.