Something remarkable happened on Friday, indicating the accelerating institutionalization of bitcoin market that has been pioneered by ordinary people for years.
That’s because options, or hedging instruments, tied to BlackRock’s bitcoin exchange-traded fund (ETF), IBIT, have grown slightly larger on the Nasdaq than the total trading of bitcoin options on offshore giant Deribit. It is particularly striking that in just two years, IBIT options have closed the gap with Deribit’s bitcoin options market, which has been operating since 2016.
On Friday, the dollar value of open or active IBIT options contracts on Nasdaq, the so-called open interest (OI), was $27.61 billion, slightly higher than $26.90 billion in Deribit’s bitcoin options, according to data tracked by decentralized crypto volatility protocol Volmex.
This milestone indicates that the regulated, institutional-grade bitcoin investment and derivatives infrastructure in the United States is no longer second fiddle to the offshore market. Furthermore, a thriving regulated market in the US may encourage more Wall Street institutions to explore digital assets, ultimately leading to more mature price discovery.
Deribit’s global head of retail sales and business, Sidrah Fariq, described IBIT’s rise as a net positive for the broader crypto derivatives ecosystem.
“U.S. retail cannot onboard platforms like Deribit, so iShares Bitcoin Trust (IBIT) options give them direct access to regulated leverage and options exposure. This is further supported by the current macro environment of supply chain uncertainty, energy shocks and broader geopolitical risks, which naturally drive demand for hedging and options strategies,” Fariq told CoinDesk.
What are options?
Options are derivative contracts that give the buyer the right to buy or sell the underlying asset at a predetermined price at a later date. Think of it as paying a token price to reserve the right to buy or sell the property at a pre-agreed specific price in the future. A call option gives the right to buy and represents a bullish bet, while a put option gives the right to sell.
Analysts use open interest as a measure of market size and participation – the higher the open interest, the deeper and more liquid the market.
Traders use options to hedge existing positions in the spot and futures markets, speculate on price direction and generate additional income on coin/ETF holdings.
One of the most preferred income generating strategies involving the IBIT ETF and IBIT options is the covered call strategy. It allows investors to take advantage of BTC’s implied volatility by simultaneously holding the ETF and shorting IBIT calls at levels well above the ETF’s current market price.
Traders with actual BTC have been doing this via Deribit for years.
Same in size but different in shape
However, the two markets now match each other in scale, but are positioned differently, which reveals a lot about the mood of traders in each.
According to Volmex, the bulk of open interest in IBIT call options points to expectations of an ETF rally to levels similar to BTC trading at $109,709 in the near term. That is approximately 41% higher than the current market price of $77,400.
The position in Deribit options is bullish but slightly measured, suggesting expectations of a rally to $106,000.
“Onshore call OI is concentrated about 4 percentage points further out-of-the-money than offshore, and the onshore average delta is slightly lower. This is consistent with onshore flow dominated by retail upside speculation and systematic call overwriting programs, both of which concentrate OI in additional OTM strikes,” Volmex said in a report shared with CoinDesk.
ETF holders are more patient
Options have expiration dates – the time when contracts settle, depending on where IBIT or spot BTC is trading at that time.
Analysis of activity across both markets suggests that October 2026 expiry is preferred on average in IBIT, while August expiry dominates on Deribit.
“IBIT options are approximately two months longer dated on an OI-weighted basis. The gap is roughly symmetrical across puts and calls, suggesting it reflects the underlying holder base, longer-horizon onshore ETF investors versus more tactical positioning offshore, rather than asymmetric demand for protection or upside,” Volmex noted.
Finally, IBIT’s implied volatility – a metric that measures expected swings in the BTC-linked ETF over the next four weeks – is higher than the implied volatility derived from Deribit’s BTC options.
Volmex attributes this premium to a structural quirk: Because ETF holders cannot easily short (express a bearish view) bitcoin directly, they buy put options as their only available hedge. This demand for put options keeps IBIT’s implied volatility slightly elevated.
All things considered, IBIT’s rapid rise in the options market is striking and in many ways now appears to rival Deribit in scale. However, the two are not direct substitutes, as IBIT options primarily cater to regulated, onshore investors who gain access to bitcoin exposure through traditional brokerage channels, while Deribit remains the go-to place for global investors.
“I don’t see this as competition. If anything, it expands the market. As more participants get comfortable trading options via IBIT, it ultimately feeds into the wider ecosystem and venues like Deribit benefit from increased sophistication and flow,” said Fariq.
