IBIT surpasses Deribit as largest Bitcoin options venue

• IBIT surpasses Deribit with $38B in Bitcoin options open interest, reshaping crypto markets.
• Wall Street’s rise in Bitcoin options brings tighter spreads, deeper liquidity, and less volatility.
• Deribit, now owned by Coinbase, stays popular with crypto-native traders despite losing the top spot.

BlackRock’s iShares Bitcoin Trust has overtaken Coinbase’s Deribit as the leading platform for Bitcoin options, signaling a shift in the center of gravity for crypto trading from offshore hubs to Wall Street.

IBIT takes the lead

Open interest in options tied to the Nasdaq-listed iShares Bitcoin Trust (IBIT) reached nearly $38 billion, outpacing $32 billion on Deribit following Friday’s contract expiry, according to data from Bloomberg and Deribit.

This development marks a significant milestone.

Deribit, founded in 2016, had long dominated Bitcoin options activity and was widely seen as the go-to marketplace for crypto derivatives.

The change comes less than a year after IBIT introduced options in November, underscoring its rapid ascent.

With $84 billion in assets, IBIT is already the world’s largest Bitcoin exchange-traded fund.

The growth of its options market is reinforcing a feedback loop in which deeper liquidity drives legitimacy, attracting more inflows and further strengthening its position.

Wall Street’s growing role in Bitcoin markets

Market participants view the development as part of a broader structural shift in crypto markets.

George Mandres, senior trader at XBTO Trading, said in a Bloomberg report that Wall Street’s increasing participation in Bitcoin options brings “substantial capital and trading expertise.”

He argued that the presence of large financial institutions is contributing to tighter spreads, deeper liquidity, and greater efficiency across the market.

Mandres also suggested that the influence of traditional players could lead to a “volatility of volatility” dampening effect, making Bitcoin price swings less extreme.

As institutional investors weigh Bitcoin alongside traditional assets such as gold or major currencies, he sees the potential for a long-term decline in volatility.

Still, Mandres emphasized that the transition will not result in the complete centralization of liquidity in the US.

Instead, he anticipates the emergence of two parallel ecosystems: one centered around regulated traditional finance (TradFi) products like IBIT, and another in offshore and decentralized finance (DeFi) venues catering to higher-risk traders.

Deribit’s role and the offshore market

Despite losing its top ranking, Deribit remains a key player in Bitcoin derivatives markets.

Acquired by Coinbase for about $2.9 billion in August, the platform continues to attract crypto-native traders drawn to its flexibility and offshore operating model.

For years, Deribit was synonymous with leverage-driven crypto derivatives trading, shaping market dynamics through its dominance.

While IBIT’s rise underscores Wall Street’s growing footprint, Deribit’s continued popularity reflects the enduring demand for less-regulated environments and experimental financial products.

The shift in leadership highlights a fundamental transformation: Bitcoin derivatives are moving closer to the regulated core of the US financial system.

This evolution could reshape how both institutions and retail investors approach the asset class, balancing the appeal of stability and oversight against the appetite for risk and innovation.

As Bitcoin’s role in mainstream finance continues to evolve, the split between regulated and offshore markets may define the next phase of growth in digital assets.

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