UBS shook the market: exposure to call options on bitcoin ETFs grew 24-fold in a quarter
Swiss banking giant UBS is demonstrating an aggressive pivot toward crypto assets, and the second-quarter figures confirm this unmistakably. As of June 30, the bank recorded call options on 1.95 million shares of BlackRock's bitcoin ETF IBIT — a colossal jump from 80,000 shares the previous quarter. A 24-fold increase in three months is not just a portfolio adjustment, but a strategic signal from one of the largest players in the traditional financial sector.
UBS's direct position in the IBIT ETF itself also grew, albeit at a more moderate pace — up 12% over the quarter, reaching 407,890 shares. At the current market price, this is equivalent to approximately $13.6 million. However, the most telling development is the parallel reduction of protective put options by 53%, down to 143,300 shares. This dynamic suggests that the bank is deliberately reducing risk hedging, betting on further growth of the underlying asset.
This configuration — rising calls alongside shrinking puts — is a classic bullish pattern that institutional investors use when they expect confident upward movement. For UBS, which has historically been known for its conservative approach to capital management, such a move looks particularly noteworthy. This is not a speculative play on volatility, but long-term positioning that could serve as a benchmark for other banks watching the market from the sidelines.
It is important to understand that call options on an ETF are not just a bet on the price of bitcoin, but also a tool for gaining leveraged exposure. Given that IBIT is one of the most liquid spot bitcoin ETFs on the market, such operations allow large players to deploy capital more efficiently than through direct asset purchases.
My view: UBS's decision to increase call exposure 24-fold is not an isolated event, but part of a broader trend of institutional adoption of cryptocurrencies. If banks previously used derivatives for hedging, now we are seeing the direct use of options to build a directional bet. This could trigger a wave of imitation among European financial institutions, which in the medium term would put additional pressure on bitcoin supply and strengthen its price dynamics.