Bitcoin Options Surge in Derivatives Market Dominance

A recent report from Bybit and Glassnode has found that Bitcoin options are increasingly dominating the derivatives market. The joint study, titled 'The State of Crypto Derivatives,' analyzed data from various exchanges, including Bybit, Deribit, and OKX, to understand shifts in trader positioning.

The central finding is that Bitcoin options have been steadily increasing their market share relative to other derivative instruments since 2026. Bybit, which serves over 80 million users across its spot and derivatives markets, provided significant trading data for the report.

Glassnode's contribution sat on the analytics side, with the firm quadrupling its options metrics in Q4 2025. These now cover a range of key metrics, including gamma exposure, which measures how quickly market makers' hedges need to change as underlying prices move.

Gamma exposure can create self-reinforcing price dynamics, either dampening or amplifying moves. The report also highlighted premium flows, which track where money is actually moving in the options market. Concentrated call buying at specific strikes can signal where the market expects resistance to break.