Downside Insurance on BlackRock's Spot Bitcoin ETF is Now Pricer Than Bullish Bets

Downside Insurance on BlackRock's Spot Bitcoin ETF is Now Pricer Than Bullish Bets

Early Thursday, CoinDesk reported bullish-to-neutral shift in sentiment in the options market tied to BlackRock's spot bitcoin exchange-traded fund (ETF). But by the end of the day, the situation worsened further, with sentiment turning slightly bearish.

The one-year put-call skew, which reflects how the market prices in volatility risk for put options, offering downside protection, relative to bullish call options, turned slightly positive to 0.2%, according to data source Market Chameleon.

In other words, the day closed with protective put options trading at a slight premium relative to calls in a sign of renewed bearish sentiment.

IBIT fell 1.32% to $59.99 Thursday, while registering a net inflow of $125 million, the lowest single-day tally since May 13, according to data source SoSoValue.