Kraken Expands into European Crypto Options Market

Kraken has begun offering European-style, cash-settled options on Bitcoin and Ether to eligible professional and institutional clients on Kraken Pro. This move is part of a strategic shift towards institutional clients and regulated trading, leveraging its MiFID license to access regulated markets in Europe.

Alexia Theodorou, Director of Derivatives at Kraken, stated that the company's entry into European crypto options marks a significant milestone in its expansion plans. With its MiFID license, Kraken aims to move crypto options into Europe's regulated sphere, which is its next focus.

The contracts are linear and settled in US dollars, with premium, profit and loss, and settlement all denominated in fiat. The first phase trades through a request-for-quote (RFQ) model, with weekly, monthly, quarterly, and semi-annual expiries. Kraken built the technology in-house, investing heavily in the product to differentiate itself from competitors.

The company's move into European crypto options comes as crypto derivatives volume reaches $111.5 trillion, with options notional valued at $3.1 trillion in 2025. This growth is attributed to a shift towards institutional ownership and more developed derivatives markets, according to a Cboe Global Markets report.