UBS Loads Up On Bitcoin ETF Options with Cryptic Move
UBS, which manages over $7 trillion in assets, has significantly increased its call option position linked to BlackRock's Bitcoin ETF, iShares Bitcoin Trust (IBIT). The bank's call options in IBIT rose by 24-fold in the second quarter, while it reduced its put options by 53% and boosted direct holdings of IBIT shares by 12%. This move was disclosed in a regulatory filing for the period ending June 30.
The increase in call options grants UBS the right to buy IBIT shares at a predetermined price on a specific date. The number of underlying shares in these contracts rose from 80,000 at the end of the first quarter to 1.95 million shares.
UBS's total value for these assets is approximately $13.6 million. However, without access to strike prices and expiration dates of the options, it is impossible to determine UBS's net directional position in relation to a rise or fall in Bitcoin price.