Nearly 50% of Deribit’s Bitcoin Open Interest Now Linked to Options Based on BlackRock’s Bitcoin ETF.

Since the launch of BlackRock’s spot Bitcoin ETF (IBIT) options on November 19, their growth has been rapid, and they now represent almost half of the Bitcoin options market on Deribit.

The surge in U.S.-regulated crypto products is clearly reflected in the increasing popularity of IBIT options, which are SEC-approved and have garnered significant attention. As of Monday, there were 2.16 million open IBIT options contracts, representing a notional value of $11 billion, according to data from optioncharts.io. This value is calculated by multiplying the open interest by the current ETF price and the lot size of 100.

This surge in IBIT options now accounts for about 50% of the $23 billion in open Bitcoin options on Deribit, where each option contract represents one Bitcoin.

Options are financial instruments that give traders the right to buy or sell an underlying asset at a set price before a specific expiration date. These instruments are widely used for speculation or to hedge against market risks, particularly leveraging price volatility.

For years, Deribit has been the leader in Bitcoin and Ether options, allowing traders to implement complex strategies. However, Deribit’s offshore status has kept U.S.-based investors, especially those looking for regulated markets, from participating. Now, with the IBIT options, this gap is being filled.

“IBIT options, which are tied to BlackRock’s Bitcoin ETF, are particularly appealing to both institutional investors and U.S. retail traders who prefer trading in regulated markets. The rising demand for IBIT options shows how this segment is growing rapidly,” said Volmex Finance, a crypto derivatives protocol, in an email to CoinDesk.

According to Volmex, the rise of IBIT options is challenging Deribit’s established dominance in the crypto options market. However, Luuk Strijers, CEO of Deribit, is optimistic about the impact.

“While IBIT options are primarily traded by U.S. retail investors, a group historically excluded from Deribit, their entry into the market hasn’t negatively impacted us. In fact, it’s created new arbitrage opportunities and helped institutional traders implement better risk management strategies,” Strijers explained.

He also noted that the IBIT options market is primarily focused on short-term options, indicating that there is strong demand for contracts with lower premiums. This development reflects a shift in the crypto derivatives market landscape.