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See all newslettersBy signing up, you will receive emails about CoinDesk products and you agree to our terms of use and privacy policy.Open interest in BTC options has swelled to nearly $80 billion, up from around $8 billion at the start of the year, putting it on par with bitcoin’s long-established futures market. That level of growth marks a shift in how traders express views and manage risk in crypto.Options activity, once a secondary signal, now functions as a key input for market participants trying to read or anticipate moves in the underlying asset, FalconX said. Unlike spot trades, which show where prices are now, options reveal how investors are positioning around future moves.Two vehicles are driving the trend, according to the trading firm: options exchange Deribit and options BlackRock’s iShares Bitcoin Trust (IBIT), which trade on the Nasdaq. Deribit remains the go-to for crypto-native traders, with short-dated options and round-the-clock risk management. IBIT, meanwhile, has quickly become a heavyweight in institutional flow, even matching Deribit’s open interest within its first year. Its options are typically longer-dated and more call-heavy, aligned with hedging strategies, structured products and yield-enhancing overlays used in traditional finance.The diverging profiles hint at who is trading and why. A hedge fund chasing volatility may lean into Deribit’s weekly cadence. A pension fund or asset manager, on the other hand, might be using IBIT to buy long-term upside exposure with limited downside.Put/call ratios reinforce the split. Deribit’s ratio sits around 0.5–0.6, indicating a balance between puts and calls. On IBIT, it has hovered around 0.3, reflecting a tilt toward bullish strategies and structured positioning, according to FalconX.Implied volatility, another core metric, has also trended lower throughout 2025, the report found. On the surface, that might suggest complacency. But the spread between implied and realized volatility remains intact, meaning option sellers are still earning typical premiums and the market isn’t mispricing risk. This dynamic has made short-vol strategies attractive, but it may not last. A spike in realized volatility, triggered by a macro shock or regulatory change, could flip that setup quickly.The divergence in volatility between bitcoin and ether ETH$4,497.41 adds another layer. While both assets used to move in sync, ETH implied volatility has stayed firmer, supported by staking and DeFi-related flows. BTC, by contrast, has seen steady supply from miners and other large holders selling options to generate income, pushing its implied volatility lower.FalconX’s report concludes that crypto options are no longer a niche. Their size, participant mix and strategic use now make them a vital signal for anyone trying to understand or anticipate market moves. Traders, allocators and risk managers increasingly watch two dashboards: Deribit for short-term, event-driven risk, and IBIT for longer-term institutional positioning.Bitcoin OptionsAI Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see CoinDesk's full AI Policy.More For YouTotal Crypto Trading Volume Hits Yearly High of $9.72TBy CoinDesk DataSep 9, 2025Combined spot and derivatives trading on centralized exchanges surged 7.58% to $9.72 trillion in August, marking the highest monthly volume of 2025What to know:Combined spot and derivatives trading on centralized exchanges surged 7.58% to $9.72 trillion in August, marking the highest monthly volume of 2025Gate exchange emerged as major player with 98.9% volume surge to $746 billion, overtaking Bitget to become fourth-largest platformOpen interest across centralized derivatives exchanges rose 4.92% to $187 billionView Full ReportMore For YouIREN Declines 6% on $875M Convertible Note OfferingBy Krisztian Sandor, AI Boost|Edited by Stephen Alpher2 hours agoThe hot-handed bitcoin miner turned high-performance computing play could raise as much as $1 billion in the note sale.What to know:IREN's stock fell 6% after announcing an $875 million convertible debt offering, with potential to increase to $1 billion.The convertible notes, maturing in July 2031, will fund operations and capped call transactions to mitigate share dilution.Despite the drop, IREN's stock remains up 1,000% from April lows due to strong AI infrastructure demand.Read full storyLatest Crypto News SEC Aiming to Formalize 'Innovation Exemption' by End of Year, Chair Atkins Says1 hour agoIREN Declines 6% on $875M Convertible Note Offering2 hours agoCleanCore's Dogecoin Treasury Tops 710M Tokens, Booking $20M+ Gain7 hours agoBitcoin Dips to $122K as Crypto Rally Gets Overheated. 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