Record-Breaking Options Activity in Bitcoin and Ether Surpasses $20 Billion Amid ETF Excitement

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Bitcoin and Ether options activity has skyrocketed, reaching a historic high of $20.64 billion. Eventually, this surge in activity comes as anticipation grows around the potential approval of a Bitcoin Exchange-Traded Fund, or ETF

National Open Interest In BTC & Ether Hits $20.64 Billion on Deribit

The combined notional open interest in Bitcoin and Ether options listed on the Deribit exchange has surpassed the $20 billion mark. This surge is a clear indicator of the growing interest in cryptocurrencies, particularly as the approval of a Bitcoin ETF seems more likely.”

Meanwhile, the current notional open interest, valued at $20.64 billion, nearly matches the previous peak reached in November 2021 when Bitcoin was trading at a remarkable $66,000, much higher than its current value of around $34,150. 

Luuk Strijers, Chief Commercial Officer at Deribit, expressed that this milestone is not only a significant achievement for Deribit but also reflects the broader growth and increasing interest in cryptocurrency options. 

However, it’s important to note that Deribit is a major player in the world of cryptocurrency options, holding a commanding 90% share of global options activity.

Rising Options Interest Reflects Maturing Market

The rising interest in options activity indicates a maturing market. Options are contracts that give holders the right to buy or sell an underlying asset at a predetermined price on or before a specific date. As options gain popularity, their influence on the cryptocurrency market also increases.”

This record-breaking options activity suggests that the influence of investors and market makers on the spot market price is growing. Meanwhile, the Market makers recently had a net short gamma exposure in Bitcoin, meaning they may have purchased the leading cryptocurrency to balance their overall exposure, inadvertently accelerating the price increase. 

Over the past two weeks, Bitcoin has surged by 30%, reaching a price of over $35,000.

Billions in Bitcoin and Ether Options Set to Expire on Deribit

Significantly, today marks the expiry of billions of dollars in Bitcoin and Ether options on Deribit at 08:00 UTC. This event has the potential to introduce added volatility to the market. 

Traders had notably favoured ‘in the money’ call options, a trend that gained traction when Bitcoin was priced at $27,000, eventually propelling it to $35,000. These dynamics underline the rapid evolution and maturation of the cryptocurrency market.