BlackRock’s iShares Bitcoin Trust exchange-traded funds (ETFs) (NASDAQ: IBIT) have leapfrogged Deribit, the top crypto-native derivatives exchange, to become the largest venue for Bitcoin options by notional open interest.
An ETF is an investment fund that pools assets, such as stocks, bonds, or commodities, into a single product that trades on an exchange, similar to a stock.
Bloomberg Intelligence data show that IBIT now controls $38 billion in open interest, taking the lead over Deribit, which had been the premier trading venue for professional traders and hedge funds for years.
Why it matters
Since 2016, Deribit, based in Dubai, has established itself as the premier venue for Bitcoin options, executing the bulk of daily volumes in this rapidly growing niche market.
Options contracts allow investors to lock in prices on Bitcoin’s volatility, and Deribit has therefore become a fundamental component of crypto-native trading strategies.
The fact that IBIT — a US-regulated ETF launched in 2024 — has eclipsed Deribit as the dominant venue is an indication of liquidity flowing away from offshore, lightly regulated platforms and towards regulated products managed under Wall Street’s jurisdiction.
ETF growth and options dominance
IBIT has quickly become the largest Bitcoin ETF in the market. It has total net assets of $90.87 billion and a market capitalization of nearly $89.8 billion as of the time of writing. Its share price rose 3.15% on Oct. 2 to $68.84, a 10.69% increase over the last 90 days.
Bloomberg Intelligence data also show that IBIT has open interest in options worth $37.9 billion, dwarfing competitors such as Grayscale’s Bitcoin Trust, ARK 21Shares, and Fidelity’s Wise Origin Bitcoin Fund.
“Options tend to be more winner-take-all vs. ETF AUM, which is more spread around,” noted Bloomberg analyst Eric Balchunas on X. Balchunas also added: “ETFs are no joke… Fat crypto margins are in trouble.”
