BlackRock Overtakes Deribit in Bitcoin Options Market

BlackRock’s iShares Bitcoin Trust (IBIT) surpassed Deribit in Bitcoin options trading volume, reaching close to 38 billion USD in open contracts, marking a new financial milestone on Nasdaq.

The shift underscores a growing trend of institutional investment in regulated cryptocurrency products, reflecting a significant realignment of market dynamics from offshore exchanges to Wall Street’s oversight.

IBIT’s Rapid Ascension in Bitcoin Options Market

BlackRock’s iShares Bitcoin Trust (IBIT) recently outpaced Deribit, a long-standing leader in Bitcoin options, by achieving nearly $38 billion in open interest. This leap occurs less than a year after IBIT initiated options trading, illustrating a rapid rise in its market stature. Since its inception in 2016, Deribit dominated this section for many years.

The rise of IBIT in the Bitcoin options sphere signifies not just an increase in volume but a significant shift in institutional crypto strategies. With increased involvement from wealth managers and hedge funds, Wall Street now commands a larger share of the crypto trading ecosystem. Institutional participants show keen interest, given the security and regulation of a Wall Street environment, deviating from offshore exchanges.

“I believe the next generation for markets, the next generation for securities, will be tokenization of securities.” — Laurence Fink, CEO, BlackRock

Responses across the financial world highlight the broad impact of IBIT’s surge. BlackRock did not release new direct statements, though its leadership, notably CEO Laurence Fink, frequently endorses crypto institutionalization. The broader market views this move as a significant vote of confidence in regulated crypto products.

Onshore Expansion Bolstered by Institutional Trust

Did you know? The shift to onshore options venues like IBIT mirrors previous trends during 2021 when the CME briefly overtook offshore venues in Bitcoin futures, reflecting institutional preferences for regulated exchanges.

According to CoinMarketCap, Bitcoin (BTC) trades at $114,073.46 with a market cap of $2.27 trillion. It holds a market dominance of 58.14%. The 24-hour trading volume surged to $61.59 billion, marking a 133.73% increase. BTC’s price recently changed by 3.42% in a day and has risen 7.84% over 90 days.

CoinCu’s research indicates a potential trend towards further onshore expansion, with financial entities seeking regulated avenues for crypto investments. Institutional influx, new regulations, and secure technological frameworks propel this gradual yet substantial migration. Bitcoin’s foundation remains robust, driven by regulatory developments and technological advancements.