Bitcoin options near 60% of derivatives open interest as hedging grows
Bitcoin options take a bigger share of derivatives trading
Options made up just under 60% of open interest across all bitcoin derivatives last week, according to Volmex, the issuer of the bitcoin volatility index BVIV. That is up from around 50% at the start of the year.
Open interest means the total value of contracts that traders have opened and not yet closed. The market counted by Volmex covers bitcoin futures, perpetual futures, and options that are either native to crypto platforms or tied to exchange-traded funds (ETFs, which are funds that trade on stock exchanges).
Volmex described the change as a structural shift in bitcoin markets, saying trading bitcoin is now about managing risk rather than only betting on which way the price will go.
What options let traders do
Options are derivative contracts with a fixed expiry date. They let traders take a view on three things at once: the direction of the price, how large the price swings will be, and the timing of a move. Derivatives are financial contracts whose value is based on another asset.
According to the source, options allow investors to hedge their holdings, earn extra income, or bet on a big price move without borrowing. That means positions can be held longer than a leveraged perpetual bet. Options are also priced on expected volatility, which is what gauges such as Volmex's BVIV track.
Key numbers from the bitcoin derivatives market
- Options were just under 60% of bitcoin derivatives open interest last week, up from about 50% at the start of the year, per Volmex.
- As of Friday, options tied to U.S. bitcoin ETFs held about $36 billion in open interest, with BlackRock's IBIT accounting for nearly $35 billion of that.
- Adding options on crypto-native platforms brings the figure to roughly $76 billion.
- Including bitcoin futures, both perpetual and dated contracts, the overall market reaches about $129 billion.
- ETF options are now about 47% of the bitcoin options market, which is mainly held by Deribit.
- IBIT options open interest has tripled since January 2025, when it was about $11 billion.
BlackRock expands its bitcoin fund lineup
The source points to BlackRock's growing set of bitcoin-related funds as another sign of rising options use. In June, the asset manager introduced the iShares Bitcoin Premium Income ETF (BITA), which aims for monthly income by selling call options on part of its IBIT holdings. That means giving up some upside in exchange for option premiums.
Earlier this week, BlackRock filed to offer a bitcoin buffer ETF that would use options to limit losses in a downturn while also capping potential gains.
A pattern also seen in U.S. equities
The source says the growth in bitcoin options matches what has happened with U.S. equities. As of last year, options tied to the S&P 500 Index accounted for nearly 75% of all derivatives linked to the index and index equivalents.
What is confirmed
The Volmex figures, the market size details as of Friday, the BlackRock fund dates and filings, and the S&P 500 comparison are all reported from the supplied source material. The source also notes bitcoin's volatility could keep declining, a trend it says has been underway since spot bitcoin ETFs launched in early 2024.
What is still unclear
The source does not give a forecast for how far options share of the market may rise, nor does it say what would reverse the trend. The comment that volatility could continue to fall is presented as an expectation, not a confirmed outcome.
Why it matters
Options give traders ways to manage risk, earn income, or bet on volatility rather than only on price direction. A larger options share suggests more bitcoin trading is being done with defined expiry dates and risk limits instead of leveraged directional bets.
Sources
Newisty Editorial Team covers technology, cryptocurrency, digital products, online platforms, developer tools and the wider digital economy. Our content is researched from official sources, company announcements, public documentation, market data and other primary or reputable sources. Articles are reviewed and edited before publication for clarity, accuracy and useful context.