When Blackrock’s Ishares Bitcoin Trust (Ibit) The options were live on November 19, commercial activity exploded, reaching more than $ 2 billion in volume on the first day.
Around the same time, the strategy (Mstr) Multiple to net asset value (MNAV)calculated by dividing its business value by its bitcoin NAV, reached a cycle of 3,141 on November 20. This peak aligned with the price of Bitcoin about $ 100,000 and MSTR shares reach a historical maximum of $ 540.
Since then, Mstr has fallen 40%, and its MNAV has compressed to 1.55. In the peak, the strategy had 331,200 BTC, which now represents an increase of approximately 305,000 BTC compared to the previous holdings.
Mstr has long offered investors a unique commercial vehicle, combining capital exposure with Bitcoin’s volatility. Merchants could use it as much as a leverage work in Bitcoin and as an instrument for option strategies. This differentiated it from Ibit, which only provided direct exposure to detect bitcoin, but now investors have the option of both.
Despite Ibit’s strong debut and constant growth, Mstr has greatly exceeded since the launch of Bitcoin Spot ETFs in January 2024. MSTR has increased more than 515%, compared to the gain of 128% of Ibit. In metrics such as the volume of historical trade and volatility, Mstr continues to surpass Ibit.
Currently, Bitcoin’s implicit volatility is below 40, a relatively moderate level. Implicit volatility reflects the expectations of the market for future price changes, and when it is low, merchants are less inclined to follow leverage or options based on strategies. To take advantage of products such as Mstr to recover the impulse, Bitcoin’s volatility will probably need to rise more.
