UBS shook the market: exposure to call options on bitcoin ETFs grew 24-fold in a quarter
Swiss banking giant UBS is demonstrating an impressive turnaround in its strategy toward digital assets. According to my analysis of the latest data, as of the end of the second quarter, the bank 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 — a 24-fold increase, indicating a radical shift in the institutional player's sentiment.
It is particularly telling that UBS is not just expanding its derivatives instruments but also strengthening its direct positions. Direct ownership of IBIT shares grew by 12% over the quarter, reaching 407,890 shares, equivalent to approximately $13.6 million at current prices. This points to long-term confidence in the underlying asset rather than speculative trading.
Hedging or aggressive appetite?
A key signal is the sharp 53% reduction in protective put options, down to 143,300 shares. Such a move suggests that the bank is deliberately reducing downside insurance, anticipating further growth. This dynamic contrasts with the caution UBS previously displayed and could serve as an indicator for other institutional investors.
Interestingly, we are observing a classic pattern: the bank is using calls to gain leverage on upside while simultaneously cutting downside protection. This is a bold step, especially amid the volatility we saw in June. However, the scale of the position — nearly 2 million shares in options — indicates that UBS views bitcoin ETFs as a mature instrument with an acceptable level of risk.
My expert conclusion: This move by UBS is not just a corporate transaction but a marker of market maturity. When a systemically important bank increases its exposure 24-fold, it signals that institutional money has stopped viewing bitcoin as an exotic asset. In the coming quarters, I expect similar actions from other major banks, which could act as a catalyst for a new wave of price growth.