The demand for regulated crypto products in the US is real, as evidenced by the success of BlackRock's spot bitcoin exchange-traded fund (ETF) and its associated options. The approved options tied to the ETF, known as IBIT, are already almost half the size of Deribit's bitcoin options market, which has been around for eight years. On Monday, there were 2.16 million open IBIT options contracts, representing a notional value of $11 billion. This accounts for 50% of the $23 billion locked in open BTC options on Deribit. IBIT options are appealing to both institutional investors and US retail traders who favor regulated markets, challenging Deribit's dominance in the crypto options market. However, Deribit CEO Luuk Strijers sees positive effects from the introduction of IBIT options, as they have created new arbitrage opportunities and facilitated enhanced risk-offloading strategies.



Other News from Today