Since the introduction of BlackRock’s spot Bitcoin ETF (IBIT) options on November 19, they have experienced rapid growth and now represent almost half of the total Bitcoin options market on Deribit.
The growing demand for regulated crypto products in the U.S. is clearly reflected in the rising popularity of IBIT options, which are SEC-approved. As of Monday, there were 2.16 million open IBIT options contracts, with a total notional value of $11 billion, based on data from optioncharts.io. This value is derived by multiplying the open interest by the ETF’s price and the standard lot size of 100.
At present, these IBIT options make up roughly 50% of the $23 billion in open Bitcoin options on Deribit, where each contract represents one Bitcoin.
Options are financial derivatives that give traders the right, but not the obligation, to buy or sell an asset at a predetermined price by a specific expiration date. They are used to speculate on price movements or hedge against risk, with Bitcoin options becoming an increasingly popular tool for such strategies.
For years, Deribit has been the leading platform for Bitcoin and Ether options, allowing traders to implement a variety of strategies. However, Deribit’s offshore status has limited access for U.S.-based investors seeking a regulated environment. The launch of IBIT options has now filled this gap.
“IBIT options, backed by BlackRock’s Bitcoin ETF, have quickly become attractive to both institutional and retail investors in the U.S., who prefer regulated trading environments. The growing demand for IBIT options demonstrates how this market segment is expanding,” said Volmex Finance, a crypto derivatives protocol, in an email to CoinDesk.
Volmex also pointed out that IBIT options are beginning to challenge Deribit’s long-standing dominance in the crypto options market. However, Deribit’s CEO, Luuk Strijers, remains positive about the impact.
“IBIT options are predominantly traded by U.S. retail investors, a group that previously did not have access to Deribit. Their participation has not negatively affected us. On the contrary, it has created new arbitrage opportunities and facilitated better risk management strategies for institutional participants,” Strijers explained.
He further noted that the majority of activity in IBIT options is centered on short-dated contracts, indicating strong demand for options with lower premiums. This shift is reshaping the landscape of the crypto derivatives market.
