UBS Multiplies Bitcoin Options Exposure by 24 Times

UBS, the world's largest wealth manager, has significantly increased its exposure to the bitcoin market in the second quarter. The Swiss bank reported positions in call options representing 1.95 million underlying shares of the iShares Bitcoin Trust (IBIT), BlackRock's spot bitcoin ETF. This is a 24-fold increase from the previous quarter, where UBS held only 80,000 shares.

The bank also reduced its exposure to put options by 53%, dropping from 303,300 to 143,300 underlying shares. The combination of these two moves suggests a more optimistic directional positioning regarding the price of bitcoin.

UBS's direct position in IBIT shares increased by approximately 12%, rising from 364,300 to 407,900 shares, valued at about $13.6 million at the end of June. This is not as high as it was last year, when UBS held 548,600 shares.

The increase in call options exposure could be interpreted as a bet on the rise of bitcoin's price, but it may also reflect intermediation activity or discretionary portfolio management.