UBS shook up the market: exposure to call options on bitcoin ETFs grew 24-fold in a quarter
Swiss banking giant UBS is demonstrating an unprecedented appetite for bitcoin through derivatives. According to my analysis of the latest regulatory data, as of the end of June, the bank held call options on 1.95 million shares of BlackRock's bitcoin ETF IBIT. This is a colossal leap — a quarter earlier, the figure stood at just 80,000 shares. A 24-fold increase in three months is not merely a portfolio adjustment but a strategic bet on the upward momentum of the first cryptocurrency.
At the same time, UBS's direct position in IBIT itself grew by 12%, reaching 407,890 shares, equivalent to approximately $13.6 million. This dynamic suggests that the bank is not just speculating on volatility but is building up the underlying asset. Interestingly, protective mechanisms have been weakened: exposure to put options decreased by 53% — to 143,300 shares. This is a clear signal of reduced hedging sentiment and confidence in the medium-term price trajectory.
What lies behind this bet?
Such a redistribution of risk by an institutional player of UBS's caliber is a marker for the entire market. When a bank with a conservative reputation increases "bullish" derivatives 24-fold, it indicates that large capital sees current bitcoin levels as undervalued. The reduction in puts further confirms: managers expect not a correction but a continuation of the rally, likely fueled by inflows into spot ETFs.
My expert assessment: UBS's actions are not an isolated case but part of a broader trend among traditional financial institutions transitioning from cautious testing to aggressive accumulation. However, it is worth remembering that options positions of this scale can amplify volatility during sharp market movements, especially around expiration dates. Investors should keep in mind that institutional giants play the long game, and current data is merely a snapshot of their strategy, not a guarantee of future returns.