Bitcoin, once the Wild West of the crypto world, is now ironically becoming exactly what it was designed to disrupt — a traditional financial asset under Wall Street’s microscope. Instead of hoodie-clad crypto traders, the ones pulling the strings today wear suits.

BlackRock’s IBIT: The New Institutional Gateway to Bitcoin

The key player in this transformation is BlackRock’s iShares Bitcoin Trust (IBIT), which has become the largest Bitcoin ETF in the world with $86 billion in assets under management. But the story isn’t just about the fund — the real action is happening in the booming options market around it.

IBIT’s daily options trading volume has now surpassed $4 billion, and open interest has reached $34 billion — exceeding most ETFs focused on emerging markets or corporate bonds. Only ETFs tied to equities and gold trade more actively.

Bitcoin as a Standard Asset – Wall Street Takes the Lead

Rocky Fishman, founder of Asym 500, describes the situation as “extremely unusual” — no ETF in history has spawned an options market of this scale within just eight months of launch. IBIT has quickly become the go-to instrument for risk valuation in the U.S. Bitcoin ETF space.

Institutional investors, who once avoided crypto derivatives due to their offshore status, now have solid ground. With spot ETFs and listed options on U.S. exchanges, they can finally apply familiar risk management strategies.

Investor Behavior Shifts: Less Speculation, More Hedging

Greg Magadini from Amberdata notes a growing trend of investors using put options for downside protection. The narrowing spread between call and put prices, even when Bitcoin isn’t rallying, signals a maturing market. This behavior dampens volatility and reduces panic selling.

This shift is also visible in trading hours — more than 57% of BTC/USD volume now occurs during U.S. trading hours, compared to just 41% in 2021. Nearly half of Bitcoin spot volume now flows through U.S.-listed ETFs.

Deribit, Coinbase, and the Battle for Dominance

While Deribit remains the leading offshore platform for Bitcoin derivatives, IBIT is closing in fast. In May, Coinbase acquired Deribit for $2.9 billion. Both firms are now working to integrate their infrastructures — potentially enabling shared collateral, unified risk frameworks, and seamless cross-platform execution.

Regulatory Barriers Still in the Way

IBIT’s rapid growth has hit a regulatory wall. The current 25,000-contract limit on options is hampering institutional strategies. Nasdaq has requested the SEC to raise this cap tenfold, with a decision expected in September.

BlackRock’s Robbie Mitchnick believes lifting these limits would unleash a significant surge in options volume. But even with the cap in place, Wall Street isn’t slowing down.

The Future? A Fully Digitized Market

Bitcoin is being treated like any other asset. “Eventually, all assets will be digital,” says Kevin de Patoul of Keyrock. “And what we call cryptocurrency today will just be another part of the financial system — priced, hedged, and risk-managed like everything else.”

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