Nearly $2.5 billion in Bitcoin and Ethereum options expire today, setting up a potentially volatile end to the month as traders juggle upside bets with deep downside insurance.

On the surface, positioning appears constructive. But beneath the call-heavy skew lies a striking anomaly: one of the largest open interest clusters in Bitcoin sits far below spot — at the $40,000 strike.

Calls Dominate, But Max Pain Sits Higher

Bitcoin is currently trading around $67,271, with max pain positioned at $70,000. Open interest shows 19,412 call contracts and 11,044 put contracts. This gives a put-to-call ratio of 0.57 and reflects an overall upside bias. The total notional volume tied to the expiry is roughly $2.05 billion.

Ethereum mirrors that constructive tilt, though in a more balanced fashion. ETH trades near $1,948, with max pain at $2,025.

Calls (124,109 contracts) outnumber puts (90,017), resulting in a put-to-call ratio of 0.73 and a notional value of approximately $417 million.

“…positioning skews call heavy across both assets, with BTC showing the stronger upside skew. Max pain levels sit below dominant call open interest in BTC, while ETH positioning is more balanced but still constructive,” analysts at Deribit noted.

Max pain refers to the price at which the greatest number of options expire worthless, minimizing payouts to buyers.

With both BTC and ETH trading below their respective max pain levels, price gravitation toward those strikes into expiry could reduce losses for option sellers.

The $40,000 Put: A Tail-Risk Signal

Despite the headline bullish skew, a massive concentration of puts at the $40,000 strike has caught market attention.

The $40,000 Bitcoin put is now the second-largest strike by open interest, representing roughly $490 million in notional value. This comes after Bitcoin’s sharp retracement from prior highs, which reshaped hedging demand across the board.

“While aggregate positioning into expiry skews call heavy, one strike stands out: The $40K BTC put remains among the largest open interest strikes ahead of February expiry. Deep OTM downside protection demand remains visible on the board, even as headline put/call ratios lean constructive,” Deribit analysts indicated, highlighting the unusual size of the position.

In short, traders may be positioned for upside, but they are unwilling to rule out another volatility shock.

Hedging, Premium, and Structural Implications

The dynamic suggests a broader change in Bitcoin’s derivatives market. Options are increasingly used for directional bets, yield strategies, and volatility management.

Analyst Jeff Liang argued that extracting premium from the options market could reduce structural selling pressure.

“If we can stably extract the premium from the options market and empower Bitcoin HODLers, it means: HODLers no longer need to sell their Bitcoin to improve their lives… Selling pressure on Bitcoin will reduce… This will further drive Bitcoin’s price upward,” he stated.

The analyst described options premium as a “localized pump” driven by fear and greed, one that redistributes value to long-term holders without contradicting Bitcoin’s fixed supply cap.

Overall, calls outweigh puts across both BTC and ETH, signaling that traders retain exposure to a rebound. Yet the sheer scale of deep out-of-the-money hedges reveals a market that remains cautious.

With billions in notional value set to expire, the key question is whether prices drift toward max pain—or whether hidden crash-protection demand proves prescient, reigniting volatility just as traders expect calm.

According to data from Glassnode, US spot Bitcoin exchange-traded funds (ETFs) have recorded their largest balance drawdown of the current market cycle following the early October all-time high.

Nonetheless, despite the recent outflows, the broader ETF picture still remains constructive.

Bitcoin ETFs See Deepest Cycle Pullback as Balances Fall to 1.26 Million BTC 

Glassnode data shows that since October, US spot Bitcoin ETF balances have declined by roughly 100,300 BTC. At press time, total holdings stood at approximately 1.26 million BTC.

The contraction reflects sustained net outflows, as investors have withdrawn capital from spot ETFs, leading funds to reduce holdings. According to SoSoValue, $1.6 billion was pulled from these products in January alone, extending a streak of monthly outflows that began in November 2025.

The decline in ETF balances has unfolded alongside a broader market downturn. Bitcoin has trended lower since reaching its record high of $126,000 in October. The weakness has spilled into 2026, fueling elevated fear and uncertainty across the market.

Although spot ETFs were widely seen as a structural catalyst during Bitcoin’s rally, experts suggest the same mechanism may have intensified downside pressure during periods of redemptions. In early February, Arthur Hayes argued that institutional dealer hedging activity is amplifying downward pressure on BTC prices.

“Institutional de-risking has added structural weight to the ongoing weakness, reinforcing the broader risk-off environment,” Glassnode added.

The strain extends beyond ETF outflows and into mounting unrealized losses. According to Glassnode, the average entry price for US spot Bitcoin ETF investors stands at approximately $83,980 per BTC. 

With Bitcoin trading at $67,349 at the time of writing, this cohort is currently sitting on paper losses of roughly 20%.

Meanwhile, the outflows are not isolated to Bitcoin. BeInCrypto reported $173 million exited digital asset funds last week. This marked the fourth consecutive week of redemptions, totaling $3.7 billion for the period.

Bitcoin ETF Net Inflows Still at $53 Billion Despite Recent Outflows 

Despite the pessimism, some analysts continue to emphasize the longer-term picture. Bloomberg senior ETF analyst Eric Balchunas noted that cumulative net inflows into Bitcoin ETFs still stand at roughly $53 billion, down from a peak of over $63 billion in October 2025, even after recent outflows.

“Our (more bullish than most of our peers) prediction was $5-15b in first year. This is imp context to consider when looking/writing about the $8b in outflows since 45% decline and/or the relationship bt btc and Wall street, which has been overwhelmingly positive,” he added.

Taken together, the data suggest the current retracement reflects cyclical risk reduction rather than a structural reversal. ETF flows have amplified both upside and downside moves, embedding Bitcoin more deeply into traditional capital markets dynamics.

While short-term pressure may persist amid broader macro uncertainty, the scale and speed of institutional adoption since launch indicate that Bitcoin’s integration into Wall Street portfolios remains intact.

Metaplanet Chief Executive Simon Gerovich has rejected claims that the company lacks transparency in its Bitcoin investment strategy, following criticism shared on X.

In a detailed public response, Gerovich addressed allegations that Metaplanet failed to disclose purchases, mismanaged options trading, and withheld key financial information. He said the claims were misleading and ignored data already available to shareholders.

The comments came after an anonymous post accused the company of hiding losses and buying Bitcoin at market peaks using shareholder funds.

CEO responds to disclosure and trading claims

Gerovich said Metaplanet has consistently announced all Bitcoin (BTC) purchases when they were made. He added that the company maintains a public dashboard showing wallet addresses and holdings in real time.

According to him, four Bitcoin purchases made in September were disclosed promptly, even though prices were near local highs at the time. He said the company’s strategy does not focus on short-term market timing, but on long-term accumulation.

匿名アカウントの裏に隠れて、何の責任も負うことなく他者を非難し、炎上させることは簡単です。しかし、私は自らの発言とメタプラネットの行動すべてに対して公の場で責任を負うことに何の抵抗もありません。そのため、寄せられている各主張に対して、直接お答えします。… https://t.co/e0ieMGq29N

— Simon Gerovich (@gerovich) February 20, 2026

He also pushed back against criticism of the firm’s options activity. Gerovich explained that selling put options is meant to lower the effective cost of acquiring Bitcoin through premium income.

As an example, he said selling a put at $80,000 with a $10,000 premium would reduce the effective purchase price to $70,000. He argued that this approach benefited shareholders during periods of high volatility.

The CEO said this strategy helped raise Bitcoin per share by more than 500% in 2025, which remains the company’s main performance indicator.

Financial results, borrowing, and shareholder concerns

Gerovich also addressed concerns about Metaplanet’s financial statements. He said net profit figures do not accurately reflect the performance of a Bitcoin-focused treasury company, due to unrealized valuation changes.

He pointed instead to operating profit, which rose sharply year over year, as evidence that the business remains healthy. Losses, he said, were mainly accounting adjustments on long-term Bitcoin holdings that the company does not plan to sell.

On borrowing practices, Gerovich said Metaplanet disclosed its credit facility, drawdowns, and collateral terms when they occurred. However, he noted that lender identities and exact interest rates were withheld at the counterparty’s request.

He added that the terms were favorable and fully approved under disclosure rules.

The CEO also responded to claims that the firm relies solely on shareholder funding. He said he is a major shareholder and has invested personal funds in the company. He pointed to the hotel business, which recorded solid revenue and profit in 2025, as proof that Metaplanet still operates outside crypto.

Gerovich concluded by saying he remains open to direct questions from investors and will continue publishing detailed updates on the company’s activities.

US spot Bitcoin exchange-traded funds (ETFs) may be seeing heavy outflows lately, but the broader picture tells a different story.

According to Bloomberg ETF analyst Eric Balchunas, cumulative net inflows into Bitcoin (BTC) ETFs peaked at $63 billion in October and now stand at about $53 billion, even after months of redemptions.

“That’s NET NET +$53b in only two years,” Balchunas wrote on X, sharing data compiled by fellow analyst James Seyffart.

The figure far exceeds Bloomberg’s early projections, which had called for inflows of $5 billion to $15 billion over that time frame.

In other words, recent withdrawals haven’t erased the bigger success story. Despite Bitcoin’s roughly 50% pullback from its highs, institutional money hasn’t fled at the same pace, suggesting many investors are holding for the long term rather than panic selling.

The US spot Bitcoin ETFs were approved in early 2024 and quickly became a dominant force in the market. Bitcoin went on to hit new all-time highs ahead of its April 2024 halving event, breaking historical trends, with ETF accumulation accelerating through 2025 and peaking in October as prices surged past $126,000.

The launches are widely considered among the most successful in US ETF history. BlackRock’s iShares Bitcoin Trust, in particular, became the fastest ETF ever to surpass $70 billion in assets, reaching the milestone in under a year.

Related: BlackRock sees record quarter for iShares ETFs as Bitcoin, Ether demand surges

Bitcoin faces an uncertain 2026 as cycle debate intensifies

To be sure, 2026 is shaping up to be a challenging year for Bitcoin and the broader digital asset market, following a renewed sell-off in late January and early February that sent the biggest cryptocurrency to about $60,000.

Investor sentiment remains fragile, prompting some analysts to argue that the latest bull market, consistent with Bitcoin’s historical four-year cycle, may have run its course.

Others contend the cycle is simply evolving. They argue that a longer business cycle and changing macro conditions could be stretching Bitcoin’s traditional rhythm rather than ending it.

Bitwise analysts Matt Hougan and Ryan Rasmussen go further, suggesting Bitcoin may be breaking from its long-standing four-year pattern altogether due to the growing influence of institutional capital.

“The wave of institutional capital that began entering the space in 2024 is likely to accelerate in 2026,” the analysts said, pointing to expanded access on major wealth platforms such as Morgan Stanley and Merrill Lynch.

Despite rapid institutional adoption through spot ETFs, Bitcoin appeared to lose retail attention in 2025 as investors gravitated toward other high-growth themes, according to data from crypto market maker Wintermute.

Related: Bitcoin mining’s 2026 reckoning: AI pivots, margin pressure and a fight to survive

Cointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph’s Editorial Policy and aims to provide accurate and timely information. Readers are encouraged to verify information independently. Read our Editorial Policy https://cointelegraph.com/editorial-policy

ProShares has launched a new money market exchange-traded fund designed to help stablecoin issuers manage regulatory-compliant reserves backed by short-term U.S. Treasuries.

The company said in a Feb. 19 statement that the ProShares GENIUS Money Market ETF, trading under the ticker IQMM, is built to meet reserve rules under the GENIUS Act. The fund invests only in short-term U.S. Treasury securities and is designed to serve as a low-risk cash management option.

ProShares described IQMM as a conservative product for institutions, financial advisers, and individual investors. A key target group is companies that issue dollar-backed stablecoins and need compliant ways to manage large reserve balances.

Focus on stablecoin reserve management

IQMM holds only short-term government-backed securities, including Treasury bills and related instruments. This structure allows the fund to qualify as eligible backing for payment stablecoins.

Under current U.S. rules, stablecoin issuers must maintain one-to-one reserves in safe and liquid assets. These requirements have increased demand for products that combine regulatory compliance with operational flexibility.

The ETF allows investors to trade throughout the day and settle transactions on the same day. Weekly income distributions are planned, giving holders a steady return on idle funds.

IQMM also uses a floating net asset value and dual NAV options. These features are intended to help institutions move large cash positions without disrupting daily operations.

ProShares said the fund carries a net expense ratio of 0.15%. While retail investors can access the product, the main focus remains on firms managing large reserve pools. Industry estimates suggest stablecoin issuers held more than $150 billion in U.S. Treasuries by late 2025.

“We believe that IQMM will be an attractive cash management alternative for institutional investors, including stablecoin treasuries,” said ProShares chief executive Michael L. Sapir.

Traditional finance deepens its crypto ties

The launch reflects closer links between traditional asset managers and the digital asset industry, as regulators demand higher standards for stablecoin backing.

With IQMM, ProShares is offering a ready-made option for companies that prefer not to manage Treasury portfolios on their own. The ETF structure allows issuers to meet reserve rules while relying on familiar market infrastructure.

Analysts say such products could make compliance easier for crypto firms entering more regulated environments. Instead of building internal treasury operations, issuers can place reserves in approved funds with clear reporting and oversight.

Some market observers, however, note that heavy redemptions during periods of stress could put pressure on money market ETFs tied to stablecoin activity. Managing liquidity during volatile conditions will remain an important test.

ProShares manages more than $95 billion across its ETF and mutual fund platforms. In recent years, the firm has expanded into crypto-linked, income-focused, and tactical investment strategies.

US-based exchange-traded funds issuer ProShares has launched a money market ETF designed to qualify as an eligible reserve asset under the GENIUS Act, positioning it for potential use by stablecoin issuers.

The ProShares GENIUS Money Market ETF, trading under the ticker IQMM, invests exclusively in short-term US Treasurys. Unlike conventional government money market funds, it uses a floating net asset value (NAV) based on market pricing and trades intraday on an exchange.

According to an announcement on Wednesday, the structure includes same-day settlement and dual NAV features designed for institutional reserve management.

The prospectus adds that because the portfolio is limited to reserve-eligible assets under the GENIUS Act, the fund’s yield may be lower than that of money market funds with broader mandates. It also says that shares are expected to be held primarily by one or more stablecoin issuers backing outstanding tokens.

The prospectus further warns that future rulemaking under the GENIUS Act or other US legislation could affect how the ETF may be used as a reserve vehicle.

The US GENIUS Act, passed in July 2025, establishes federal standards for payment stablecoin reserves, including requirements that backing assets be held in high-quality, short-duration instruments such as US Treasurys.

Bethesda, Maryland-based ProShares was founded in 2006, and manages more than $95 billion in assets across its ETF and mutual funds, according to the company.

Related: Ether bulls target $2.5K as staking ETF launch, RWA growth fuel optimism

New SUI staking ETFs launch as Bitcoin funds post weekly outflows

Several asset managers rolled out new crypto ETFs this week, including staking-focused SUI (SUI) products.

On Wednesday, Canary Capital Group launched the Canary Staked SUI ETF on Nasdaq under the ticker SUIS, offering exposure to the spot price of SUI while participating in the Sui Network’s proof-of-stake validation process to generate additional token rewards reflected in the fund’s net asset value.

According to data from Nasdaq.com, the ETF was trading between $23.42 and $23.71 on Thursday, with 3,633 shares changing hands at the time of writing. The ETF closed its first day of trading on Wednesday at $24.17 after opening at $25.00 a share.