$94,000 is not the top! Options traders are betting that Bitcoin will continue to rise.

The first batch of options bets on BlackRock, Inc.'s iShares Bitcoin ETF (IBIT.US) with a size of up to $44 billion suggests that traders believe Bitcoin could break more records. Data compiled by Bloomberg shows that over 350,000 contracts were traded on the iShares Bitcoin ETF options after they debuted on Nasdaq on Tuesday, with around 80% being bullish bets. Nine out of the top 10 options with the highest trading volume were betting on increases. The most actively traded options were those expiring in January next year with a strike price of $55, followed by bullish options expiring in December with a strike price of $65 - 25% higher than the fund's closing price on Monday. With the ETF options listing, Bitcoin surged past $94,000 on Tuesday to reach a record high. Some investors expect that the U.S. Bitcoin ETF options will attract more funds into this digital asset. Bitcoin price saw a spike after cryptocurrency supporter Donald Trump won the U.S. election. Some analysts believe Bitcoin could hit the $100,000 milestone by the end of this year. Caroline Mauron, co-founder of Orbit Markets, a liquidity provider for crypto derivatives, said the trading volume of options is "a good start, indicating a growing connection between the native cryptocurrency ecosystem and the traditional financial world. While the trading volume itself is not enough to influence the direction of the underlying asset, positive news undoubtedly fuels bullish sentiment." The frenzy of funds flowing into Bitcoin funds It is reported that the iShares Bitcoin ETF is the largest Bitcoin fund globally and one of the 12 spot Bitcoin ETFs in the U.S. According to Bloomberg data, since its listing in January, the fund has attracted about $29 billion in net inflows. Around $5 billion of the inflows occurred after the U.S. election on November 5th. After the U.S. election, a large amount of funds flowed into BlackRock, Inc.'s Bitcoin fund. Trump promised to establish a U.S. regulatory framework favorable to digital assets and set up a Bitcoin strategic reserve. However, the realization of these promises still remains uncertain. So far, non-U.S. platforms such as Binance and Deribit have dominated a large portion of crypto derivatives trading. But the open interest in regulated crypto futures contracts hosted by CME Group Inc. Class A hit a record high, indicating growing interest from U.S. institutions in regulated crypto exposure. Noelle Acheson, author of the newsletter "Crypto Is Macro Now," said, "The Bitcoin derivatives market is very active, but in the U.S., the size of Bitcoin derivatives is still relatively small compared to other asset classes, and mainly limited to institutional investors." She added that a more deep-rooted U.S. cryptocurrency derivatives market will attract new investor groups and diversify investment strategies. At the time of writing, Bitcoin's trading price is $92,631. According to CoinGecko's data, Bitcoin has more than doubled in value this year, surpassing the peak value during the pandemic period.