According to a comprehensive market analysis by James Check and Unchained, Bitcoin ETFs are experiencing unprecedented growth, particularly the iShares Bitcoin Trust (IBIT), fueled by the expanding options market. The report reveals options have become the dominant derivatives instrument with over $90 billion in open interest, surpassing futures markets at $80 billion.
Since its January 2024 launch, IBIT has accumulated approximately $61 billion in net inflows over 18 months, positioning it among the most successful ETFs in history. The dominance accelerated significantly following November 2024's ETF options launch, with IBIT attracting $32.8 billion in inflows while competitors remained stagnant.
IBIT now controls 57.5% of all Bitcoin ETF assets under management, up from 49% in October 2024, maintaining roughly 40 cents of options open interest for every dollar of Bitcoin held. Comparatively, Fidelity's FBTC shows approximately $1.3 billion in options open interest—25 times smaller than IBIT.
The activity level has positioned IBIT as a competitor to Deribit, the world's largest crypto options exchange, which typically sees $4-5 billion in daily trading volumes. SEC 13F filings further indicate institutional ETF holdings, enabling market participants to utilize options for short positions and volatility hedging through arbitrage methods.
The report concludes Bitcoin's volatility profile has fundamentally shifted this cycle, with ETFs and their options markets serving as primary catalysts. "The launch of options on spot ETFs represents a significantly under-discussed yet crucial evolution in Bitcoin's market structure," the analysis emphasized.