The Bitcoin (BTC) options market has expanded so significantly that it is now shaping the cryptocurrency’s spot price, according to a report by trading firm FalconX.

Open interest in BTC options has surged to nearly $80 billion from around $8 billion at the start of the year, matching the scale of bitcoin’s established futures market. This growth reflects a broader shift in how traders express views and manage risk in crypto, with options activity now serving as a key input for anticipating price moves rather than a secondary signal.

Two platforms are driving this trend: crypto-native Deribit, offering short-dated, round-the-clock options, and BlackRock’s Nasdaq-listed iShares Bitcoin Trust (IBIT), which has quickly reached open interest levels comparable to Deribit. IBIT’s longer-dated, call-heavy options cater to institutional strategies such as hedging, structured products, and yield enhancement.

Diverging trading profiles illustrate differing strategies. Hedge funds focused on volatility lean on Deribit’s weekly cadence, while pension funds and asset managers use IBIT for long-term upside exposure with limited downside. Put/call ratios highlight this split: Deribit sits around 0.5–0.6, IBIT near 0.3, reflecting bullish institutional positioning.

Implied volatility has trended lower in 2025, but the gap between implied and realized volatility remains, keeping short-vol strategies viable—though a sudden spike could quickly reverse that advantage. Meanwhile, ETH implied volatility has remained firmer due to staking and DeFi flows, contrasting with BTC’s steady option supply from miners and large holders.

FalconX concludes that crypto options are no longer niche instruments. Their size, strategic use, and diverse participant base make them critical signals for traders, allocators, and risk managers. For now, Deribit provides insights on short-term, event-driven risk, while IBIT reflects longer-term institutional positioning.