18 Jan 2021
Open interest boom in the BTC options marketThe size of the open interest in the bitcoin options market is currently above $8.5 billion, and its growth has outpaced the BTC futures market. Will we soon see a flippening?
Source: Bybt, Skew
The open interest in the bitcoin options market currently sits at $8.5 billion and is up 355% over the last three months.Deribit dominates the option market, currently accounting for more than 87% of the total open interest.Futures and perpetuals have long been the preferred bitcoin derivatives products to trade, but the recent growth in the options market suggests that the tide could be about to turn.Currently, the accumulated size of the open interest in the option market is 71% of the futures market’s size. Back in June 1st, 2020, the open interest in the option market was 33% of the size of the futures market.It is clear that more traders are experimenting with options now, and we expect this trend to continue, given the flexibility of trading options.Utilizing options in a clever way may allow sophisticated traders to build viable strategies within hedging or specific bets, but we do not recommend anyone without prior experience to partake in these markets without doing proper research in advance.