Options Volumes Surpass Perpetual and Futures Trading, Says Deribit
In a recent report, crypto derivative exchange Deribit revealed that options volumes are outperforming the depressed trading activity in perpetual and futures contracts. According to Deribit Chief Commercial Officer Luuk Strijers, this surge in options trading is driven by the demand for yield, particularly as these options expire. Last month, The Block reported that $3 billion worth of bitcoin options and $1.8 billion worth of ether options expired on September 29.
The Decline in Perpetual and Futures Volumes
Deribit’s Thursday newsletter highlighted that perpetual and futures volumes in the derivatives market have dropped by 22% quarter-on-quarter due to the lack of direction and volatility. However, the silver lining is that overall market options volumes remain consistent between Q3 and Q2, indicating zero activity loss. This resilience positions options as a more robust asset class compared to perpetuals and futures.
Hot Take: Options Thrive Amidst Market Volatility
The growing popularity of options trading suggests that investors are seeking opportunities for yield generation in an uncertain market environment. With the expiration of significant bitcoin and ether options contracts, traders are actively engaging in options trading to capitalize on potential price movements. Despite the decline in perpetual and futures volumes, the stability of options trading demonstrates its resilience as an attractive investment avenue amidst market volatility.
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