UBS blew up the market: exposure to call options on bitcoin ETFs grew 24-fold
Swiss banking giant UBS is demonstrating an unprecedented appetite for bitcoin instruments, and this is not just statistics—it is a signal for the entire institutional market. As of June 30, the bank held call options on 1.95 million shares of BlackRock's bitcoin ETF IBIT, a 24-fold increase from the previous quarter, when exposure stood at just 80,000 shares.
What is particularly telling is that UBS is not merely speculating on derivatives but is also building a direct position in the underlying asset. Direct ownership of IBIT shares grew by 12% over the quarter, reaching 407,890 shares, equivalent to approximately $13.6 million at current market prices. This points to long-term confidence in the asset rather than short-term play on volatility.
Even more telling is the reduction in protective positions. Put option exposure fell by 53%—to 143,300 shares. Such a sharp cut in hedging mechanisms, combined with aggressive accumulation of calls, indicates that UBS expects a confident upward move in bitcoin over the medium term.
This kind of dynamic from one of the world's largest wealth management banks is not just a trade but a strategic bet. When a conservative Swiss bank, known for its caution, increases call option exposure 24-fold, it signals a deep shift in the perception of bitcoin as an institutional asset class.
My analysis: This move by UBS confirms my long-standing thesis that we are on the brink of a second wave of institutional adoption. The first wave was represented by hedge funds and family offices, and now classic banks with their multi-billion-dollar portfolios are entering the game. The reduction of puts amid such growth in calls is a classic bullish pattern that has historically preceded significant rallies. I expect that in the coming quarters we will see similar actions from other systemically important banks, which could become a catalyst for a new all-time high.