UBS has blown up the market: exposure to call options on bitcoin ETFs has grown 24 times in a quarter.
Swiss banking giant UBS is demonstrating an aggressive pivot toward crypto assets, judging by fresh data on its portfolio positions at the end of the second quarter. As of June 30, the bank held call options on 1.95 million shares of BlackRock's bitcoin ETF IBIT — a colossal jump from 80,000 shares a quarter earlier, representing roughly a 24-fold increase. This move clearly signals that old-school institutional players are beginning to hedge and speculate on the rise of the first cryptocurrency with unprecedented confidence.
Notably, UBS is not just expanding its derivative instruments but also increasing direct investments in the underlying asset. Its direct position in IBIT grew by 12% over the quarter, reaching 407,890 shares, equivalent to approximately $13.6 million at current prices. This suggests the bank views bitcoin not as a fleeting trend but as a strategic component of its portfolio, despite the volatility.
Particularly noteworthy is the sharp reduction in put options — down 53% to 143,300 shares. Such a decline in protective positions, combined with explosive growth in calls, creates a clear bullish signal. UBS appears to be betting on a continuation of bitcoin's upward movement, removing downside insurance while increasing upside potential. This is a classic strategy for those expecting price consolidation above key levels.
For the market, this is an important marker: when a conservative player like UBS begins actively using options structures on crypto ETFs, it legitimizes digital assets in the eyes of other banks and pension funds. We may see a wave of imitation among European financial institutions that have so far been cautious about direct access to bitcoin.
My expert take: A 24-fold increase in call options is not just a hedge but a clear speculative position on a breakout. If UBS is right and we see a new all-time high, this could become a trigger for even more aggressive institutional capital inflows. However, it is worth remembering that such large options positions can amplify volatility during sharp market moves, especially around expiration dates.