In brief
- •BlackRock’s IBIT ETF reaches 38 billion dollars in open interest and becomes the global leader in Bitcoin options.
- •Deribit, owned by Coinbase since a 2.9 billion dollar acquisition, loses its dominance after a significant volume drop.
- •IBIT’s resilience against September capital outflows confirms institutional appeal for ETFs.
- •This dominance of traditional products could reduce volatility and the typical profit margins of cryptos.
BlackRock’s IBIT takes the Bitcoin options crown
BlackRock has made a strong impact. In just a few months, its IBIT ETF has established itself as an undeniable force in the Bitcoin options market. This financial product has dethroned Deribit, previously considered the absolute benchmark for crypto options traders for years.
The numbers confirm this turning point. While IBIT posted a record level of 38 billion dollars in open interest, Deribit saw its volumes collapse over recent weeks.
The historic expiration of 21 billion dollars in Bitcoin and Ethereum options at the end of September heavily weighed on native platforms. ETFs, meanwhile, weathered this storm with a stability commanding respect.
This resilience is even more impressive considering September was a challenging month for the entire market. Bitcoin ETFs experienced massive institutional capital outflows, accompanied by poor returns.
Despite this unfavorable context, IBIT has maintained its growth, confirming what many analysts already repeat: this is indeed the “largest ETF launch in history.”
The competitive context adds an ironic twist to this rise. Barely four months ago, Coinbase paid 2.9 billion dollars to acquire Deribit, betting on a rapid expansion of the crypto options market.
Coinbase’s stock had even jumped 37 % at the time of negotiations. But today, this acquisition already seems overshadowed by the meteoric rise of traditional ETFs, led by BlackRock.
The consequences of institutional dominance
This leadership change is not trivial. It marks a turning point in Bitcoin market evolution. Traditional financial institutions, led by giants like BlackRock, are progressively appropriating the tools that were the hallmark of the crypto universe.
The massive open interest on Bitcoin options remains a positive signal for the market. It reflects a diversified appetite of investors and an overall bullish sentiment. As the bitcoin price continues its upward trend, this dynamic suggests growing market maturity.
However, this institutionalization carries risks. As traditional platforms capture trading flows, the typical profit margins of cryptos may compress.
The rapid and spectacular gains that built the sector’s reputation would become rarer. Volatility, both a curse and opportunity for crypto, could diminish under the regulatory influence of institutions.
The upcoming arrival of ETFs on altcoins, expected after the lifting of the US government shutdown, could amplify this phenomenon. Will traditional products gradually encroach on all the space of native platforms?