BlackRock's iShares Bitcoin Trust ETF (IBIT) experienced unusual trading activity during a sharp Bitcoin sell-off on Thursday. The fund dropped as investors rushed to hedge risk in the options market, but IBIT shares rebounded strongly on Friday as Bitcoin recovered.
Following the volatility, traders began watching options activity tied to the ETF, not just inflows and outflows, to better understand how large investors were positioning in Bitcoin.
Record Hedging Activity Emerges
Options volume linked to IBIT jumped to about 2.33 million contracts on Thursday, the highest on record. Traders paid roughly $900 million in premiums, with put options slightly exceeding call options. Because puts are commonly used for downside protection, the data suggests investors were guarding against further declines as Bitcoin briefly dropped toward the $60,000 level.
The spike suggests large investors were hedging their positions rather than simply selling shares. Because IBIT is a key way institutions gain Bitcoin exposure, activity in its options market can hint at how they are positioning.
Some traders linked the surge to a leveraged fund under margin pressure, while others said it looked like normal hedging during a sharp drop. In any case, the move shows IBIT options are becoming another signal investors watch alongside ETF inflows to gauge demand for Bitcoin.
What TipRanks Data Shows
According to TipRanks data, IBIT recently traded around $39.68 after a nearly 10% daily gain, with assets under management of about $58.2 billion and an expense ratio of 0.25%.
Despite the short-term rebound, the ETF remains down 31% over the past month and 34% in 2025, reflecting how closely its performance follows Bitcoin’s volatility.
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