Bitcoin Protection Favored Ahead of $14.6B BTC and ETH Options Expiry

$14.6B Bitcoin, Ether Options Expiry Skews Toward BTC Downside Protection

Bitcoin (BTC $109,756.33) and ether (ETH) options worth more than $14.6 billion are set to expire Friday on Deribit, marking one of the largest quarterly settlements of 2025. The positioning highlights strong demand for bitcoin puts — suggesting traders are hedging against further downside — while ether flows appear more balanced.

According to Deribit Metrics, 56,452 BTC call option contracts and 48,961 put contracts are due for settlement, representing $11.62 billion in notional open interest. Open interest is concentrated in puts with strike prices between $108,000 and $112,000, just below BTC’s current spot price of ~$110,000. On the call side, the heaviest activity is at $120,000 and above, reflecting selective optimism for a breakout higher.

Ether’s setup is comparatively less defensive. A total of 393,534 call contracts versus 291,128 puts are expiring, amounting to $3.03 billion in open interest. Significant ETH activity is clustered around calls at $3,800, $4,000, and $5,000, while put interest sits near $4,000, $3,700, and $2,200.

“BTC expiry points to persistent demand for downside protection, while ETH looks more neutral. Combined with Powell’s Jackson Hole signal, this expiry may help set the market tone for September,” Deribit noted on X.

Options give traders the right, but not the obligation, to buy (calls) or sell (puts) the underlying asset at a set price before expiry. While calls reflect bullish sentiment, puts serve as insurance against declines.

The crypto options market has expanded significantly since 2020, with quarterly expiries now acting as major catalysts. Some traders track the “max pain” level — the strike price where option holders collectively lose the most value — though its predictive power remains contested. Current max pain levels stand at $116,000 for BTC and $3,800 for ETH, potentially serving as gravitational points into Friday’s expiry.