Bitcoin Options Reach Half of Open Interest as Derivatives Market Evolves

The crypto derivatives market is undergoing significant changes as options gain popularity and expiring futures contracts decline in volume. According to a joint report by Glassnode and Bybit, options now account for nearly half of Bitcoin's notional open interest, up from around 25% at the beginning of the study period.

This shift represents a structural transformation, with traders increasingly using options to manage risk and express market views. The report notes that leveraged trading has shifted towards perpetual contracts, while risk pricing is migrating to the options market.

Bybit's growth in the options space stands out, with its share of Bitcoin options volume jumping from under 10% to 28%, nearly tripling. This growth stems primarily from active turnover rather than accumulation of open positions.

The report also highlights Bybit's leadership in tokenized commodities derivatives, particularly in gold perpetual contracts and options. The platform's dominance is a result of its ability to provide liquidity, product breadth, and infrastructure needed to support the next phase of growth.