How to Convert an IBIT Strike Price to Bitcoin Price
The Short Answer
Every IBIT option strike maps directly to an implied Bitcoin price level. The formula is simple: Strike ÷ BTC-per-share ratio = Implied Bitcoin Price. With IBIT's current ratio of about 0.000564 BTC per share, a $50 strike implies roughly $88,652 in Bitcoin terms.
If you're holding an IBIT option and want the BTC number now, that's the math.
The Formula
IBIT Strike ÷ BTC-per-Share Ratio = Implied Bitcoin Price
That's it.
The BTC-per-share ratio is the amount of Bitcoin backing each share of iShares Bitcoin Trust (IBIT). Right now it's approximately 0.000564 BTC per share, sourced from official BlackRock iShares daily holdings disclosures and updated after each trading session.
This works for any strike price. Plug in the strike, divide by the ratio, and you have the Bitcoin price your option is referencing.
Two important nuances:
- The ratio changes slowly over time because IBIT charges a 0.25% annual expense ratio, paid by selling tiny amounts of the fund's Bitcoin holdings.
- Today's conversion will be slightly different six months from now — but for short-dated options, the difference is negligible.
Key point: This is the same math the calculator uses. Knowing it lets you sanity-check trades quickly when markets are moving fast.
Step-by-Step Example — Call Option
Let's walk through a realistic call option from start to finish.
Example: IBIT $55 Call
Step 1: Get the current ratio
BTC-per-share ≈ 0.000564
Step 2: Convert the strike to Bitcoin
$55 ÷ 0.000564 ≈ $97,518
Interpretation: Bitcoin needs to be above $97,518 for this call to be in-the-money at expiration.
Step 3: Add the premium to find break-even
Assume you paid $1.50 for the option.
($55 + $1.50) ÷ 0.000564 ≈ $100,177
Interpretation: Bitcoin needs to reach $100,177 for you to break even (before commissions and fees).
This distinction matters. Being in-the-money is not the same as being profitable.
Step-by-Step Example — Put Option
Puts work the same way — but the premium math flips. This is where many traders slip up.
Example: IBIT $45 Put
Step 1: Same ratio
BTC-per-share ≈ 0.000564
Step 2: Convert the strike to Bitcoin
$45 ÷ 0.000564 ≈ $79,787
Interpretation: Bitcoin needs to be below $79,787 for this put to be in-the-money.
Step 3: Subtract the premium to find break-even
Assume you paid $2.00 for the put.
($45 − $2.00) ÷ 0.000564 ≈ $76,241
Interpretation: Bitcoin must drop to $76,241 for you to break even.
Remember this rule:
Calls add premium. Puts subtract premium.
This is the #1 mistake retail traders make when converting IBIT options to BTC terms.
Quick Reference: Common IBIT Strikes → Bitcoin Prices
Based on a BTC-per-share ratio of approximately 0.000564.
| IBIT Strike | Implied BTC Price |
|---|---|
| $35 | ~$62,057 |
| $40 | ~$70,922 |
| $45 | ~$79,787 |
| $50 | ~$88,652 |
| $55 | ~$97,518 |
| $60 | ~$106,383 |
| $65 | ~$115,248 |
| $70 | ~$124,113 |
| $75 | ~$132,979 |
| $80 | ~$141,844 |
Approximate values. These shift slightly over time as the ratio changes.
Why the Ratio Matters More Than You Think
The BTC-per-share ratio is not fixed.
IBIT charges a 0.25% annual expense ratio, paid by selling small amounts of the fund's Bitcoin holdings. That means the ratio was higher at launch, it's lower today, and it will be lower still a year from now.
For weekly or monthly options, the impact is trivial. The ratio barely moves over short timeframes.
For LEAPS or long-dated positions, it's worth rechecking periodically. The same $50 strike implies a slightly higher Bitcoin price over time as the ratio drifts lower. Recalculate quarterly for any position spanning more than three months.
The ratio is sourced from BlackRock's official iShares holdings data and updates daily after market close. This is institutional-grade data — the same figures authorized participants use to create and redeem IBIT shares and arbitrage price discrepancies.
This Works for Other Bitcoin ETFs Too
The same formula applies to FBTC, GBTC, ARKB, BITB, and BTC — each just has a different BTC-per-share ratio based on its fund structure and fee schedule.
If you switch the ETF selection on the calculator, the conversion logic stays the same. Only the ratio changes.
Bottom Line
To convert any IBIT option strike to Bitcoin terms:
- Take the strike price
- Divide by the BTC-per-share ratio (~0.000564)
- Adjust for premium to find break-even (add for calls, subtract for puts)
That's the entire framework. Once you internalize it, IBIT options stop feeling abstract — and start mapping cleanly to Bitcoin price levels you already understand.
Last updated: — ratio data refreshes daily.
FAQ
What Bitcoin price does an IBIT $50 strike represent?
An IBIT $50 strike implies a Bitcoin price of approximately $88,652, calculated as $50 ÷ 0.000564. Bitcoin must be above this level for a $50 call to be in-the-money at expiration.
How do I calculate break-even on an IBIT call option?
Add your premium to the strike, then divide by the BTC-per-share ratio. Example: ($55 + $1.50) ÷ 0.000564 ≈ $100,177. Bitcoin must reach this level for you to break even.
Does the IBIT strike-to-BTC conversion change over time?
Yes, slightly. IBIT's BTC-per-share ratio decreases by about 0.25% per year due to the expense ratio. For short-dated options the impact is negligible; for LEAPS or positions spanning several months, it's worth rechecking the current ratio quarterly.