Options Dominate Crypto Derivatives Market as Bybit Leads the Charge

A recent report from Glassnode and Bybit highlights a structural shift in the crypto-native derivatives market, where options are increasingly used to manage and price risk.

The study found that options have gained market share across four of the five market regimes examined since 2019, with their fastest growth occurring during the prolonged bear market. The trend suggests that market participants are using options not just for speculative activity, but also to express views on volatility, manage downside, and price specific market events.

The report drew on Glassnode's venue-resolved derivatives and market data across the crypto-native market, individual venues, and Bybit's own derivatives book. It noted that dated futures have largely given way to perpetual contracts, with their volume sitting 97% below where it was in 2021.

Bybit has significantly increased its share of trading activity, with its Bitcoin options share nearly tripling from less than 10% to 28%. The exchange also leads Ether options and tokenized gold derivatives, accounting for approximately one-third of Bybit's total options volume. Bybit's own options market has expanded substantially, reaching $2.33 billion in value.

The findings highlight a broader evolution in crypto trading, where competitive differentiation will increasingly depend on liquidity, breadth of instruments, and the infrastructure required to serve both professional and individual traders.