A significant development occurred on Friday that underscores the growing institutionalization of bitcoin, a market initially popularized by individual investors over several years. BlackRock’s bitcoin exchange-traded fund (ETF), IBIT, has seen its options trading volume slightly surpass that of Deribit, an offshore giant in total bitcoin options since 2016. Within two years, IBIT options have nearly closed the gap with Deribit’s established market.
On Friday, Nasdaq’s open interest for IBIT options stood at $27.61 billion, marginally exceeding Deribit’s $26.90 billion, as reported by Volmex, a decentralized crypto volatility tracking platform. This milestone suggests that the U.S.’s regulated bitcoin investment and derivatives infrastructure is gaining parity with offshore markets. A flourishing domestic market may encourage more Wall Street institutions to delve into digital assets, enhancing price discovery.
Sidrah Fariq, Deribit’s Global Head of Retail Sales and Business, viewed IBIT’s ascent as beneficial for the wider crypto derivatives ecosystem. “US retail clients cannot access platforms like Deribit; therefore, IBIT options provide them with regulated leverage and option exposure,” Fariq told CoinDesk. The macroeconomic environment marked by supply chain disruptions, energy shocks, and geopolitical risks further propels demand for hedging strategies.
Options contracts grant buyers the right to purchase or sell an asset at a set price in the future, serving as speculative tools or hedges. Open interest reflects market size and participation—higher levels indicate more liquidity.
Traders leverage options for various strategies like hedging, speculating on price movements, or generating income from ETF holdings. One popular strategy with IBIT is covered calls, where investors profit from BTC’s implied volatility by holding the ETF while shorting IBIT calls at higher strike prices.
While both markets now match in scale, their positioning reveals distinct trader sentiments. Volmex data shows that a significant portion of IBIT call options indicates expectations for an ETF rally to a level equivalent to BTC trading around $109,709—approximately 41% above the current price of $77,400. Deribit’s bullish outlook is more cautious, forecasting a rise to $106,000.
Volmex noted that onshore call options are slightly further out-of-the-money than offshore ones, indicating retail speculation and systematic programs concentrating in these areas. Options have expiration dates, with October 2026 expiries preferred for IBIT and August expiries favored on Deribit. On average, IBIT options are two months longer-dated.
IBIT’s implied volatility over the next month is higher than that of Deribit’s BTC options, attributed to a structural necessity: since ETF holders can’t directly short bitcoin, they buy put options as their primary hedge, maintaining elevated volatility levels.
Overall, IBIT’s rapid growth in the options market highlights its competitive scale with Deribit. However, while IBIT targets onshore investors through regulated channels, Deribit continues to serve global investors. “This is not competition but rather an expansion of the market,” Fariq remarked, suggesting that as more participants trade options via IBIT, it benefits the entire ecosystem by fostering increased sophistication and flow.