Something notable happened on Friday, indicating the accelerated institutionalization of bitcoin. market, which has been pioneered by common people for years.
Indeed, options, or hedging instruments, linked to BlackRock’s Bitcoin exchange-traded fund (ETF), IBIT, rose slightly more on Nasdaq than total Bitcoin options traded on offshore giant Deribit. It is particularly striking that IBIT options have, in just two years, closed the gap to Deribit’s Bitcoin options market, which has been operating since 2016.
As of Friday, the dollar value of IBIT options contracts open or active on Nasdaq, so-called open interest (OI), was $27.61 billion, slightly higher than the $26.90 billion of Deribit’s bitcoin options, according to data tracked by decentralized crypto volatility protocol Volmex.
This step indicates that the regulated, institutional-grade Bitcoin investment and derivatives infrastructure in the United States is no longer playing second fiddle to the offshore market. Additionally, a regulated and thriving market in the United States could encourage more Wall Street institutions to explore digital assets, ultimately leading to more mature price discovery.
Sidrah Fariq, Deribit’s global head of retail and operations, described the rise in IBIT as a net positive for the broader crypto derivatives ecosystem.
“US retail cannot integrate 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 with supply chain uncertainty, energy shocks and broader geopolitical risks, which naturally drive demand for hedging and options strategies,” Fariq told CoinDesk.
What are the options?
Options are derivative contracts that give the buyer the right to buy or sell the underlying asset at a predetermined price at a future date. Think of it as paying a nominal price to reserve the right to buy or sell the property at a specific, pre-agreed 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 popular 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 holding real BTC have been doing so through Deribit for years.
Same size but different shape
The two markets, however, are now comparable in scale, but are positioned differently, revealing a lot about trader sentiment in each.
According to Volmex, most of the open interest in IBIT call options indicates that the ETF is expected to reach BTC-equivalent levels at $109,709 in the near term. That’s about 41% higher than the current market price of $77,400.
Deribit options positioning is bullish but slightly measured, suggesting expectations of a rally to $106,000.
“Onshore OI calls are concentrated about 4 percentage points further than offshore, and the average onshore delta is slightly lower. This is consistent with onshore flows being dominated by retail bullish speculation and systematic call crush programs, both of which concentrate OI in other OTM mintings,” Volmex said in a report shared with CoinDesk.
ETF holders are more patient
Options have expiration dates – when contracts settle, depending on where IBIT or spot BTC is trading at that time.
Analysis of activity in both markets suggests that on average, October 2026 expirations are preferred in IBIT, while August expirations dominate in Deribit.
“IBIT options have a maturity approximately two months longer on an IO-weighted basis. The spread is roughly symmetrical between the puts and calls, suggesting that it reflects the underlying holder base, longer-term ETF investors onshore versus more tactical positioning offshore, rather than asymmetric demand for protection or upside,” Volmex noted.
Finally, IBIT implied volatility – a metric that measures the expected fluctuations of 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: Since ETF holders cannot easily sell directly (express a bearish view) on bitcoin, they buy puts as the only available hedge. This demand for put options keeps IBIT 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 IBIT in scale. However, the two are not direct substitutes, as IBIT Options primarily caters to regulated domestic investors accessing Bitcoin exposure through traditional brokerage channels, while Deribit remains the go-to place for global investors.
“I don’t see this as competition. On the contrary, it expands the market. As more participants benefit from comfortable trading options through IBIT, this ultimately feeds the broader ecosystem, and sites like Deribit benefit from increased sophistication and flow,” Fariq said.
