Man Who Once Let Ohio Pay Taxes in Crypto Just Lost $1.2 Million on Bitcoin Options

Core Insights - Former Ohio State Treasurer Josh Mandel reported a personal loss exceeding $1.2 million on call options linked to BlackRock's iShares Bitcoin Trust (IBIT) after his prediction of Bitcoin reaching $444,000 by November 8 did not materialize [1][2][3] Group 1: Mandel's Investment and Loss - Mandel disclosed his "all in" strategy on IBIT call options, which ultimately expired worthless [2] - His previous investment strategies included a mix of long and short positions, with an initial bullish outlook on Bitcoin reaching $84,000 [3] - The significant loss highlights the risks associated with options trading in the volatile Bitcoin market [9] Group 2: Background on Bitcoin Advocacy - Mandel was an early advocate for Bitcoin, launching OhioCrypto.com in 2018, allowing businesses to pay state taxes in Bitcoin [5][6] - His initiative aimed to position Ohio as a leader in blockchain innovation and modernize state finances [6] - The program faced regulatory challenges and was suspended in 2019, with limited adoption by businesses [7] Group 3: Market Context - Interest in Bitcoin ETF options has surged since their launch in late 2024, with increased trading volumes and a preference for bullish positions among traders [8] - Recent performance of Bitcoin ETFs has been lackluster, with significant outflows reaching levels not seen since May, although a recent inflow was recorded after a $2.9 billion outflow streak [9] - Mandel's speculative long-term bets are seen as outliers, emphasizing the inherent risks in the options market and Bitcoin's price volatility [9]