BlackRock’s Bitcoin ETF Options Surge, Challenging Deribit’s Market Dominance

The U.S. Securities and Exchange Commission (SEC)-approved options tied to BlackRock’s spot Bitcoin ETF (IBIT), which launched on November 19, have quickly made waves in the crypto derivatives market. In less than two months, these options have amassed open interest worth $11 billion, nearly half of the $23 billion held in Deribit’s long-established Bitcoin options market.
Rapid Growth of IBIT Options
On Monday, there were 2.16 million active IBIT options contracts, according to data from OptionCharts.io. This impressive figure underscores the strong demand for regulated crypto derivatives in the U.S. Each IBIT option contract represents 100 shares of BlackRock’s Bitcoin ETF, with its notional value calculated by multiplying the ETF’s price by the lot size.
In contrast, Deribit, a leader in the global crypto options market, has dominated for eight years, offering contracts representing one BTC each. While Deribit’s offshore status has historically limited access for U.S.-based investors, IBIT options provide a regulated alternative, appealing to both institutional investors and retail traders in the U.S.
A New Era in Crypto Derivatives
IBIT options have created a fresh dynamic in the market. According to Volmex Finance, a crypto derivatives protocol, these products not only attract retail investors but also offer new opportunities for institutional players.
“IBIT options are rapidly gaining traction, challenging Deribit’s longstanding dominance. This growth reflects increasing interest from U.S. traders who previously lacked access to regulated crypto options,” Volmex commented.
Positive Ripple Effects for the Industry
Despite the rise of IBIT options, Deribit’s Chief Executive Officer, Luuk Strijers, views this development as beneficial for the broader crypto derivatives market.
“IBIT options primarily cater to U.S. retail investors—a segment historically excluded from Deribit’s platform. Their activation has not negatively impacted our market activity. Instead, they’ve introduced arbitrage opportunities and improved institutional risk management,” Strijers noted.
Deribit continues to serve as a global hub for risk and volatility management, even as new players like IBIT options gain traction.
Why IBIT Options Matter
Crypto options, like their traditional market counterparts, allow traders to hedge against or speculate on price movements, volatility, and the passage of time. With BlackRock’s spot Bitcoin ETF as the underlying asset, IBIT options have made these strategies accessible to a wider audience, particularly those who prioritize regulatory compliance.