UBS shook the market: exposure to call options on bitcoin ETFs grew 24 times in a quarter
Swiss banking giant UBS is demonstrating a striking shift in strategy regarding digital assets. According to my analysis of the latest data, as of the end of the second quarter of 2024, the bank held 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 — a 24-fold increase in a single quarter.
This dynamic is not just numbers in a report. It is a clear signal of institutional recognition of bitcoin as an asset class. UBS, known for its conservative risk management policy, is clearly revising its views, betting on further price growth of the first cryptocurrency through derivative instruments.
Direct investments and hedging: what else has changed
In addition to options exposure, the bank also increased its direct position in IBIT by 12% — to 407,890 shares, with a market value estimated at approximately $13.6 million. Notably, in parallel, UBS reduced its protective position: the volume of put options decreased by 53%, to 143,300 shares. This means the bank is not just increasing its bullish bet but is also actively removing downside hedges, demonstrating confidence in a bullish scenario.
Such a combination — rising calls, an increased spot position, and reduced puts — forms an unequivocally optimistic portfolio. In my view, this is one of the most striking examples of how traditional banking capital is adapting to the new reality of digital finance.
My comment: UBS's actions are not just a play for higher prices but strategic positioning ahead of potential approval of new ETF products and an overall softening of the regulatory environment. If giants like UBS are increasing their risk appetite for bitcoin, we could see a wave of imitation from other major banks, which would serve as an additional driver for the entire market.