UBS sharply increased its bet on bitcoin's rise: exposure to call options on ETFs grew 24-fold
An analysis of the latest quarterly report has revealed an impressive shift in the strategy of one of Switzerland's largest banks. As of the end of June, UBS recorded call options on 1.95 million shares of BlackRock's bitcoin ETF IBIT. For comparison, three months earlier, this figure stood at just 80,000 shares. Thus, exposure to bullish options grew 24-fold, signaling a radical change in sentiment by the institutional giant.
The bank's direct position in the ETF itself also showed solid growth — up 12% over the quarter, reaching 407,890 shares. At the current market price, this corresponds to approximately $13.6 million. However, the most telling indicator is the reduction in protective instruments: exposure to put options decreased by 53%, dropping to 143,300 shares. Such dynamics suggest that UBS is not just increasing its presence in digital assets but is also deliberately reducing hedging against price declines.
This portfolio configuration — a significant tilt toward calls alongside a simultaneous cut in puts — demonstrates high confidence in further growth of the first cryptocurrency's value. Institutional investors rarely take such aggressive steps without deep analysis of market conditions. The bank is likely anticipating new catalysts capable of pushing bitcoin's price toward fresh all-time highs.
My comment: This is a classic pattern of behavior by a major player ahead of an expected volatile upward move. The rise in calls combined with the collapse in puts is not merely a speculative bet but strategic positioning. Given that UBS manages trillions of dollars in assets, even a slight tilt toward crypto derivatives could have a noticeable impact on the liquidity of the bitcoin ETF options market. In the coming months, it is worth closely monitoring the bank's further actions — this could be a predictor of movement across the entire market.