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Insurance Against Price Slides in BlackRock's Bitcoin ETF Now Costliest Since April Crash
Protection against price drops in BlackRock's spot bitcoin (BTC) ETF, IBIT, is now at its priciest since the early April market slide.
Aug 18, 2025, 2:49 p.m.
What to know:
- One-year IBIT puts trade at 4.4 implied volatility premium to calls, the widest spread since early April.
- It's a sign of growing demand for downside protection.
Protection against price drops in BlackRock's spot bitcoin exchange-traded fund (ETF), is now at its priciest since the early April market slide.
On Monday, the spread between implied volatilities (IV) for 25-delta puts and 25-delta calls for the iShares Bitcoin Trust ETF (IBIT) rose to 4.4, the widest since April 10, according to data source Market Chameleon.
STORY CONTINUES BELOW
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In other words, put options, which insure the buyer against price drops in the underlying asset, traded at a premium of 4.4 IV relative to calls, or bullish bets. It's a sign investors are increasingly seeking protection against price declines, reflecting growing concerns about IBIT's near-term outlook.
IBIT gapped lower at $65.72 on Monday, tracking overnight losses in the spot bitcoin market. At press time, the ETF shares were trading at $65.44, down 1.51% for the day, having reached a record high of $69.89 last week, according to data source TradingView.
AI Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see CoinDesk's full AI Policy.
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