According to data from Skew Analytics, aggregate open interest for Bitcoin options surpassed $1.5 Billion on June 25th, and is currently sitting at an all-time high. Open interest refers to the total number of outstanding option contracts, that have not been settled. Aggregate open interest provides a more accurate picture of the options trading activity, and whether money flows into the options market are increasing or decreasing. Aggregate open interest for Bitcoin options has been growing at a rapid pace this year.
As of June 24th, Deribit had the largest open interest on the market, approximately $1.3 billion. Which is followed by the Chicago Mercantile Exchange (CME) with approximately $440 million. Data from Skew indicates that approximately $1 billion (114,000 options contracts) worth of contracts from across major Bitcoin options markets are set to expire tomorrow.
The sharp rise in Bitcoin options volume, specifically on the Chicago Mercantile Exchange (CME) shows that institutions are paying close attention and continue to enter this asset class. We may see near term volatility but overall this is a positive sign as it shows a progression of the market and a general uptrend for Bitcoin options trading especially from institutions.
For more detailed information on what is going with the cryptocurrency derivative market, click below.