BlackRock Bitcoin ETF Sees Put Option Spike as Traders Seek Strategic Entry Amid Rally

Put option volumes tied to BlackRock’s spot bitcoin ETF (IBIT) surged Friday, but the move appears driven by cash-secured put strategies rather than outright bearish positioning.

Over 13,000 contracts of the $30 put option expiring in May 2025 were traded, alongside 10,000+ contracts for the $35 strike expiring January 2026, as IBIT gained 1.7% to close at $57.91, according to Amberdata.

The spike signals that traders may be using cash-secured puts to generate income while positioning themselves to acquire IBIT at a discount. “This kind of flow likely comes from traders who missed the rally and are now employing strategies to enter the market at more favorable prices,” said Greg Magadini, Amberdata’s director of derivatives.

Under a cash-secured put strategy, sellers accept the obligation to buy the ETF at the strike price if exercised, while collecting premiums as income. For example, sellers of the $35 put expiring in January 2026 will retain the premium if IBIT remains above $35. If IBIT drops below that level, sellers purchase the ETF at $35 but keep the premium collected as a cushion.

Call Options Remain Dominant

Despite the rise in put activity, IBIT call options—reflecting upside bets—continue to trade at a premium. Positive call-put skews across expirations suggest traders are willing to pay higher prices for calls, signaling sustained bullish sentiment.

ETF Inflows Fuel Optimism

Further supporting IBIT’s strength, the ETF saw $393 million in inflows on Friday alone, accounting for the majority of the $428.9 million flowing into U.S. spot bitcoin ETFs, data from Farside Investors shows.

While increased put activity might initially suggest bearish pressure, the underlying strategy points to traders capitalizing on market dynamics to secure future positions in the ETF while earning passive income.