Bitcoin Options Overtake Futures as Structured Risk Takes Hold
Bitcoin options open interest has surged past futures for the first time, reaching $74.1 billion versus $65.22 billion in futures by mid-January. This shift reflects a broader market transition from short-term Leveraged bets to sophisticated risk management strategies using options.
The rise of options highlights institutional demand for volatility hedging and yield generation, particularly around expiry cycles and key strike prices. ETF options growth has further fragmented volatility dynamics between traditional market hours and crypto's 24/7 trading environment.
While futures remain critical for directional exposure, options now dominate the structuring of risk flows—evidenced by longer-dated positions and calendar spreads replacing ephemeral leverage trades.
