The government’s demand for regulated crypto products is real.

The US SEC-approved options linked to BlackRock’s spot bitcoin (BTC) exchange-traded fund (IBIT), which debuted on November 19, are already nearly half the size of Deribit’s eight-year-old bitcoin options market.

On Monday, there were 2.16 million open or active IBIT option contracts, representing a notional value of $11 billion, according to data source optioncharts.io. This theoretical value is derived by multiplying the open rate by the ETF’s price and the lot size 100.

The tally represents 50% of the $23 billion locked in open BTC options on Deribit at press time. One option contract on Deribit represents one BTC.

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. A call gives the right to buy and a put offer gives the right to sell.

Similar to traditional markets, traders take advantage of crypto opportunities to speculate on or hedge against price movements, volatility and the effects of time (referred to as theta).

Deribit has held a leading position for years, where traders and investors use their bitcoin and ether options to set up complex directional and non-directional strategies. But the exchange’s offshore status kept US-based investors looking for regulated avenues at bay. IBIT options step in to fill this gap.

“With BlackRock’s spot Bitcoin ETF as its underlying asset, IBIT options appeal not only to institutional investors, but also US retail traders who favor regulated markets. This fast-growing segment is evident in the increasing demand for IBIT options,” Volmex Finance, a crypto derivatives protocol, told CoinDesk in an email.

Volmex added that the growing popularity of IBIT options is challenging Deribit’s dominance in the crypto options market. However, Deribit CEO Luuk Strijers said IBIT opportunities have created positive spin-offs for the industry.

“IBIT options are predominantly traded by US retail investors, a segment that has historically not had access to Deribit. As such, their activation has not adversely affected our market activity. If anything, it has created positive effects by introducing new arbitrage opportunities and facilitating improved risk mitigation strategies for institutional participants as Deribit continues to serve as the global repository for risk and volatility,” Strijers told CoinDesk.

Strijers explained that activity in IBIT options is concentrated in short-term options, indicating demand for lower premium (priced) options.