Unusual Activity: BlackRock Bitcoin ETF Put Options Spike at $30 and $35 Strikes

BlackRock Bitcoin ETF Put Option Volumes Surge as Traders Target Strategic Income Plays

Put options tied to BlackRock’s spot bitcoin ETF (IBIT) saw a surge in trading activity, with investors likely deploying cash-secured put strategies to capitalize on premiums amid IBIT’s recent rally.

Over 13,000 contracts for the $30 strike put expiring May 2025 changed hands on Friday, while over 10,000 contracts were traded for the $35 strike put expiring in January 2026. IBIT rose 1.7% to close at $57.91, according to Amberdata.

Analysts suggest the spike in volumes stems from income-focused traders aiming to enter the ETF at discounted levels rather than outright bearish sentiment. “This looks more like cash-secured put selling, where traders are willing to take on IBIT exposure at lower prices while earning premium income,” noted Greg Magadini, Amberdata’s director of derivatives.

With cash-secured puts, sellers collect premiums upfront but agree to buy the ETF at the strike price if exercised. For instance, sellers of the $35 put will keep the premium if IBIT stays above $35 until January 2026, creating a win-win scenario for income generation and potential entry points.

Upside Calls Retain Dominance

Despite the spike in puts, call options remain dominant, with positive call-put skews signaling that implied volatility for calls continues to trade at a premium. This reflects continued bullish sentiment in the market for IBIT, mirroring optimism seen in bitcoin derivatives on platforms like Deribit.

Robust ETF Inflows Signal Strong Demand

IBIT recorded $393 million in net inflows on Friday, leading the $428.9 million total inflows across U.S. spot bitcoin ETFs, according to Farside Investors. This ongoing demand underscores growing institutional confidence in the ETF.

While elevated put volumes might appear bearish, the strategy reflects traders’ confidence in IBIT’s long-term upside while tactically positioning for potential pullbacks.

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