In a significant turnaround within the crypto derivatives landscape, BlackRock’s iShares Bitcoin Trust (IBIT) has now officially eclipsed Deribit to become the leading platform for Bitcoin options trading. This development marks a pivotal shift as institutional interest continues to reshape the dynamics of the cryptocurrency market.
Following the recent expiry, open interest in IBIT options surged to nearly $38 billion, surpassing Deribit’s $32 billion. This shift is remarkable given that Deribit has held the market’s largest share since 2016. The rapid ascension of IBIT, which only launched its options contracts in November 2022, underscores the increasing influx of institutional capital and the ongoing evolution of crypto trading.
IBIT, currently recognized as the world’s largest spot Bitcoin ETF with $84 billion in assets, has swiftly attracted substantial institutional investments. The inflow of capital into IBIT is not only enhancing liquidity but also reinforcing the legitimacy of regulated trading platforms in an environment that has traditionally been dominated by offshore venues.
Despite the momentum gained by IBIT, Deribit still retains a loyal following among crypto-native traders. The recent acquisition of Deribit by Coinbase for $2.9 billion only adds to its significance in the market. However, the rise of IBIT could signal a longer-term shift in how options trading is conducted, suggesting that U.S.-based platforms are becoming increasingly relevant.
Current data from Checkonchain reveals that IBIT’s leverage ratio stands at an impressive 45%, approaching historical highs. In terms of underlying assets, the ETF controls approximately 770,000 BTC, while its options open interest comprises 340,000 BTC. This indicates that a significant portion of IBIT’s underlying Bitcoin exposure is also reflected in the derivatives market, though the full extent of market leverage remains subject to interpretation.
At present, IBIT commands a substantial 45% share of the total global BTC options open interest, overtaking Deribit, which now sits at about 41.9%. The Chicago Mercantile Exchange (CME) accounts for a mere 6%, with other exchanges collectively representing the remaining market share. This concentration of trading activity highlights the critical role both IBIT and Deribit play in the Bitcoin options market, together controlling nearly 90% of the sector.
This evolution in the options market brings forth two key insights. Firstly, IBIT’s growing significance illustrates how institutional platforms are becoming more dominant players in derivatives trading, redefining the market landscape. Secondly, it emphasizes the relatively small footprint that traditional exchanges like CME have when compared to the expansive reach of ETF-driven platforms and those favored by retail traders.
As the cryptocurrency market continues to mature, the ascension of BlackRock’s IBIT in the realm of Bitcoin options trading reflects broader trends toward increased institutional participation and regulatory oversight. This marks a notable chapter in the evolution of crypto finance, establishing new benchmarks for both market structure and investor engagement.
