XRP Soars 12% as Institutional Traders Bet on High Volatility With Options Strategy
XRP has jumped 12% in the last 24 hours, reaching $3.32—its highest level since late July—outperforming both Bitcoin (BTC) and Ethereum (ETH). The rally comes as institutional traders ramp up exposure to volatility through sophisticated options strategies.
Key block trades on Deribit, a leading crypto options exchange, indicate growing interest in a non-directional strategy known as a long straddle. This involves purchasing both call and put options at the same strike price and expiry, designed to profit from major price swings in either direction.
On Thursday, a trader initiated a block trade involving 100,000 contracts of Aug. 29 expiry options at the $3.20 strike, paying over $416,000 in total premiums. A similar position was also opened at the $3.10 level. These trades allow investors to benefit from any large price movement while capping potential losses to the initial premium paid.
“The spike in block trades suggests increasing institutional demand for XRP volatility exposure,” said Lin Chen, Deribit’s Asia Business Head. “With XRP outperforming BTC this year, we’re also launching year-end options to meet rising demand.”
Traders typically deploy straddles when anticipating a major event—such as regulatory decisions or macro developments—but are uncertain about the outcome’s direction. The strategy offers limited downside risk and unlimited upside potential, as profits increase with the magnitude of price movement.
Adding to market momentum, the U.S. SEC and Ripple Labs announced they would drop appeals in their ongoing legal battle, effectively bringing the high-profile case to a close. Ripple leverages XRP to facilitate cross-border transactions.
The combination of legal clarity and institutional interest in volatility suggests traders are bracing for bigger moves ahead—regardless of direction.
About The Author
More Stories
Crude exported from the Middle East climbs above $100 per barrel. Here’s the potential impact on bitcoin.
Bitcoin’s pullback may persist as whale selling into retail accumulation points to a bearish market signal.
Despite behaving like a tech stock at times, bitcoin continues to offer portfolio diversification benefits, according to an analyst