Binance, the leading cryptocurrency exchange by trading volume, just made it possible for everyone to earn passive income through ether options, opening up a strategy once reserved for pros.
The exchange announced in a press release shared with CoinDesk that it allows users to write (sell) options on ether, helping them effectively manage risks and generate additional income. The move responds to growing demand from retail and institutional investors for advanced derivatives trading tools.
The announcement builds on Binance’s decision to democratize Bitcoin choice writes and reflects the explosive demand for instruments based on BTC, ETH and ETF.
The institutional appetite for these products is undeniable; Earlier this year, BlackRock’s IBIT options notably eclipsed Deribit’s native BTC options in volume, marking a pivotal moment for the crypto derivatives landscape.
“Binance remains committed to providing innovative tools that meet the evolving needs of our users,” said Jeff Li, Vice President of Product at Binance. “The introduction of ETH options writing and the upgrade to our options platform will allow traders to benefit from faster execution, greater flexibility, and richer market data to support more advanced and strategic trading approaches in the growing crypto derivatives space.”
Options are derivative contracts that give their holder the right, but not the obligation, to buy or sell an underlying asset at a predetermined price within a specific time period. These contracts pay out at a future date, depending on whether the asset’s price rises above or falls below a designated level.
While the buyer of the call profits from rising prices, the seller (the writer) takes an opposing view, essentially providing insurance against upward movements in exchange for an upfront premium. This bonus serves as immediate income.
Savvy traders have increasingly used this strategy over the past couple of years, writing calls or puts on Deribit, often against their coin holdings, to generate income.
Binance users can now do the same with Ethernet options by depositing margin to secure their obligations, with access subject to a mandatory assessment of suitability to ensure responsible trading.
To encourage immediate liquidity, Binance is also offering a significant 20% discount on Taker and Maker fees for VIP users on its newly listed ETH, BTC, BNB and SOL contracts, a move aimed at cementing its dominance in the competitive crypto options space.
Platform upgrade
In a bid to capture a larger share of the derivatives market, Binance has overhauled its options platform with a suite of infrastructure upgrades designed for high-frequency traders and institutional players.
The revamped ecosystem delivers significantly higher API throughput and lower latency, enabling faster order execution during periods of high market volatility. Beyond speed, the exchange has expanded its available strike prices across multiple assets, providing traders with the granularity needed for complex hedging and speculation strategies.
To enhance market transparency, the platform now integrates advanced WebSocket feeds, providing the in-depth market data essential for sophisticated technical analysis.
