BlackRock’s iShares Bitcoin Trust (IBIT) has officially become the biggest bitcoin options venue, surpassing Deribit. This is a big deal for the world of bitcoin derivatives, as Wall Street’s influence is now clearly extending into an area that was once the domain of offshore exchanges.
According to Bloomberg, open interest in options on IBIT hit nearly $38 billion after the last contract expiry. Deribit was at about $32 billion.
That’s a huge jump, considering IBIT only launched options trading in November 2024 and Deribit has been the go-to exchange for bitcoin derivatives since 2016.
IBIT’s growth has been historic. By mid-2024, the ETF had already reached $70 billion in assets under management (AUM) in 341 trading days, the fastest any ETF has ever done that.
Related: BlackRock’s IBIT Breaks Records, Reaches $70B AUM in 341 Days
A month later, IBIT passed $80 billion in AUM, breaking speed records compared to older giants like SPDR Gold Shares or Vanguard’s S&P 500 ETF, which took years to hit the same marks. Today, IBIT manages around $87 billion, and has become the largest bitcoin ETF in the world.
The rapid growth of IBIT is part of a bigger story: the shift of bitcoin trading from offshore hubs to regulated U.S.-based markets.
For years, platforms like Deribit thrived on leverage and high-risk trading, becoming the main hub for bitcoin options. But that dominance is now being challenged by Wall Street-backed products like IBIT, which have regulation, credibility, and massive institutional capital.
This is a big deal, as IBIT has created a feedback loop where more liquidity attracts more inflows, strengthening its position even more.
George Mandres, senior trader at XBTO Trading, told Bloomberg that Wall Street’s involvement is changing bitcoin markets.
The involvement of traditional finance, he said, brings “substantial capital and trading expertise,” which means tighter spreads, deeper liquidity and more efficiency.
Mandres even thinks that the presence of big institutions will reduce the extremes of bitcoin’s famous price swings, the “volatility of volatility” as he calls it.
Despite being surpassed, Deribit is still a major player in the market. Acquired by Coinbase for about $2.9 billion in August 2024, the platform is still attracting bitcoin-native traders who prefer offshore, flexible environments.
Analysts believe IBIT’s rise hasn’t hurt Deribit. Instead, it has created new opportunities. IBIT’s U.S.-based products have opened the door for retail investors and institutions that were previously unable or unwilling to access Deribit.
It’s worth noting that this situation has also created arbitrage opportunities and improved risk management.
This is what many see as the future: two parallel ecosystems.
One will be around regulated products like IBIT, for institutional investors and U.S. retail traders who want compliance and oversight. The other will be offshore, for those who want higher risk, more leverage and experimental financial products.
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