IBIT Options Market Drives Bitcoin ETF Dominance, Report Finds – 29/9/2025

A new report from analyst James Check and Unchained highlights how iShares Bitcoin Trust (IBIT) and its growing options market have reshaped flows and altered Bitcoin’s volatility profile.

The report emphasizes the rising importance of ETF options, noting:
“Options are now the dominant derivatives instrument by open interest, exceeding $90 billion and surpassing futures markets at $80 billion.”

Since launching in January 2024, IBIT has attracted roughly $61 billion in net inflows over 18 months, making it one of the most successful ETFs ever. The introduction of ETF options in November 2024 accelerated that dominance, driving $32.8 billion in additional inflows while competitors remained largely flat.

IBIT now controls 57.5% of all Bitcoin ETF assets under management (AUM), up from 49% in October 2024, with around $0.40 of options open interest for every dollar of Bitcoin held in the fund. By comparison, Fidelity’s FBTC, the second-largest ETF, has approximately $1.3 billion in options open interest—roughly 25 times smaller than IBIT.

The report notes that IBIT’s options market has become a major player in crypto derivatives, rivaling the world’s largest crypto options exchange, Deribit, which typically sees $4–5 billion in daily trading volume.

Institutional participation also plays a key role. Quarterly SEC 13F filings reveal that large investment managers hold significant ETF positions, enabling them to use options for hedging or arbitrage strategies, further influencing Bitcoin’s price dynamics.

The report concludes that Bitcoin’s volatility profile has shifted meaningfully in the current cycle, with ETFs and their options markets acting as a central driver.

“The launch of options on top of spot ETFs is an under-discussed but highly impactful development in Bitcoin’s market structure,” the authors wrote.