UBS has radically increased its bet on bitcoin's rise: exposure to call options on the ETF has grown 24-fold.
Swiss banking giant UBS is demonstrating an impressive turnaround in its strategy regarding digital assets. According to my analysis of fresh data from the U.S. Securities and Exchange Commission (SEC), as of the end of the second quarter, June 30, the bank held call options on 1.95 million shares of BlackRock's IBIT exchange-traded fund. This is a colossal jump compared to the 80,000 shares recorded a quarter earlier — a 24-fold increase.
This dynamic clearly signals a shift in the institutional player's sentiment from defensive to aggressively bullish. UBS's direct spot position in IBIT also grew, albeit more moderately — by 12%, reaching 407,890 shares. The market value of this stake is estimated at approximately $13.6 million, confirming a deliberate buildup of a long-term presence in the asset.
However, the most telling indicator is the sharp reduction in protective instruments. UBS's exposure to put options, which insure against price declines, plunged by 53% — to 143,300 shares. Such a redistribution of the portfolio structure suggests that the bank not only believes in stability but also expects significant upside in the price of the first cryptocurrency in the medium term.
Analytical Commentary
In my view, UBS's actions are a classic example of institutional FOMO, backed by real market conditions. Reducing puts amid such explosive growth in calls is not just hedging but a pure speculative bet on a breakout. Given that such giants typically act with an eye on liquidity, the current options imbalance could become a catalyst for further volatility growth. The market is clearly preparing for a new round of rally, and UBS's position is strong confirmation of that.