Deribit Hits Record Open Interest in Options Trading

Deribit, the world’s leading digital assets derivatives exchange, reached an all-time high in options open interest with $37.6 billion across bitcoin and ether contracts, bringing the total platform open interest to $40.8 billion as of Thursday.

The record high open interest is not solely due to rising prices; it reflects heightened overall adoption of options in the crypto derivatives space. Both institutions and retail investors are increasingly engaging with crypto options, attracted by the liquidity, robust hedging mechanisms, and precise risk management strategies they offer. Deribit CEO Luuk Strijers stated, “As institutional involvement deepens, we expect continued growth in open interest, adding stability and maturity to the crypto derivatives landscape.”

Deribit is also seeing record trading volumes across futures and perpetual contracts, with bitcoin futures trading volume at $1.42 billion and bitcoin perpetuals at $1.07 billion. Ethereum futures and perpetuals likewise show high volumes of $329.5 million and $304.4 million, respectively.

Increase in Bitcoin Options Trading Volume

According to Kaiko Research, bitcoin options trading volumes on Deribit surged at the start of the week as the digital asset approached $90,000. On Monday, daily trading volume for bitcoin options crossed $8.2 billion, with $5 billion in call options, demonstrating bullish market sentiment. Analysts noted that since November 6, the day after the U.S. election, demand for calls on Deribit has notably increased, particularly for strike prices between $90,000 and $120,000 for the December 27 expiry.

“Options activity on Deribit indicates that traders expect the current rally to continue through the end of the year,” remarked the Kaiko research analysts. Additionally, Kaiko observed that perpetual futures funding rates have turned positive, indicating increasing bullish demand, but noted that rates remain lower than in March, suggesting that the recent movements are not driven by excessive leverage.