Cost to Insure BlackRock Bitcoin ETF dey Highest Since April
Protection wey dey against price drop for BlackRock Bitcoin ETF (IBIT) don reach im highest cost since April, as put options dey trade at 4.4-point implied volatility premium pass calls. Market Chameleon data show say di 25-delta put-call spread on top di Bitcoin ETF hit 4.4, this show say demand for downside protection dey increase because of di recent market wahala around IBIT. IBIT shares drop reach $65.44, down 1.5% on Monday after e follow overnight spot bitcoin losses, after e reach record high of $69.89 last week. Traders dey hedge well well against possible fall for di ETF, e dey make implied volatility cost high and e dey show say people dey cautious about BlackRock Bitcoin ETF short-term outlook.
Bearish
Rising cost for put options on BlackRock Bitcoin ETF mean say plenty people dey want downside protection, na typical sign say traders get bearish sentiment. The wide implied volatility spread match previous spike wey happen before big price correction like April crash. Short term, this strong hedging fit make volatility increase and ETF price go dey low as traders dey buy insurance against price fall. Long term, steady demand for protection fit mean make traders cautious but e fit still prepare ground for stable bounce back when sell pressure reduce. Overall, the rise in implied vol cost mean traders dey ready for possible downside, wey point to mainly bearish outlook for near-term ETF performance.