Robert Mitchnick, Head of Digital Assets at BlackRock, told a panel at the Benzinga Future of Digital Assets conference on Nov. 19 that options volume on the iShares Bitcoin Trust ETF IBIT breached the 1 billion mark on Tuesday.

"Things happen fast here," Mitchnick said.

Robert Mitchnick, head of digital assets at BlackRock (NYSE:BLK), shared an update on the options volume for the iShares Bitcoin Trust ETF (NASDAQ:IBIT) during a panel at the Benzinga Future of Digital Assets conference on Nov. 19.

According to Mitchnick, the options volume on IBIT breached the 1 billion mark on Tuesday.

“Things happen fast here,” Mitchnick said.

Nasdaq began listing options on BlackRock's spot Bitcoin ETF on Tuesday. During the first 90 minutes of trading, 73,000 contracts were traded on IBIT, placing it among the top 20 most active non-index options.

BlackRock's IBIT is currently the only spot Bitcoin ETF listed on Nasdaq, but competitors listed on the New York Stock Exchange (NYSE) and Cboe Global Markets are expected to launch similar options trading in the coming days.

Bloomberg senior ETF analyst Eric Balchunas noted that the volume was almost entirely calls, indicating a strong bullish sentiment in Bitcoin (BTC).

A few hundred million so far in options volume on $IBIT (a ton for Day One).. here's a rank of the contracts by volume, it's almost all calls. Seems very bullish, esp the Dec20th C100, which is basically betting price of btc will double in the next month. pic.twitter.com/R6HB7OMUla

The launch of IBIT options is significant because it marks the entry of the Bitcoin spot price into the broader options market for the first time. This could have a substantial impact on the liquidity and efficiency of the Bitcoin derivatives market.

The derivatives market for traditional assets can often grow to be up to 20 times the size of the underlying asset’s market cap. If Bitcoin derivatives follow a similar trajectory, the listing of IBIT options could significantly expand the reach and functionality of Bitcoin-linked financial products.

"There's a ton of work to do to flesh out the investor opportunity and uptake around what we have,” Mitchnick said.

See More: Best Cryptocurrency Apps for 2024