• Chicago-based trading firm Group One Trading has taken a 13% “beneficial” position in Michael Saylor’s company MicroStrategy, including options to buy 1.3 million shares.
• Group One is a trading firm working in the US stock options market, and it is unusual that large market makers take directional bets on assets like bitcoin.
• MicroStrategy’s share price generally follows that of BTC, making it a de facto bitcoin ETF and an ideal investment tool for institutions who either can’t or don’t want to hold BTC directly.
Group One Trading, a Chicago-based trading firm, recently made a bold move in the crypto markets. The firm has taken a “beneficial” position representing 13% of bitcoin bull Michael Saylor’s company MicroStrategy. According to an SEC filing, the bet on MicroStrategy’s stock included bullish options that gives the trading firm the right to buy more than 1.3 million shares of the company.
Group One is a trading firm that primarily works in the US stock options market, where it generally acts as a market maker. Market makers are firms that provide liquidity in financial markets by posting bids and offers for securities. It is unusual for large market makers to take directional bets on assets like bitcoin, raising questions about the reasons behind Group One’s move. It is possible that the firm entered the position as a hedge against short exposure to bitcoin that the firm has elsewhere. However, it is also possible that Group One currently sees major upside potential for the number one crypto, and therefore chose to take a bullish bet on MicroStrategy.
MicroStrategy has transformed itself into a de facto bitcoin exchange-traded fund (ETF) by purchasing large amounts of BTC. This has caused its share price to generally follow that of BTC, making it an ideal investment tool for institutions who either can’t or don’t want to hold BTC directly. Michael Saylor has been an outspoken proponent of bitcoin, and his company’s move into BTC has been seen as a major vote of confidence in the asset class.
Group One’s move further reinforces this sentiment, as it is a major firm taking a 13% stake in MicroStrategy. It is too early to tell whether the move signals that the bottom in the crypto markets is in, but it is clear that Group One’s move is a major bullish sign for bitcoin. Whether or not the BTC bottom is in, one thing is certain: Group One’s move is a major vote of confidence in the asset class.