Bitcoin and Ether options interest has hit a historic high of $20 billion, fueled by speculation around the potential approval of Bitcoin and Ether ETFs. The ETFs could revolutionize cryptocurrency investments by allowing exposure without holding the underlying asset.

Key Takeaways

• Bitcoin and Ether options hit a record $20 billion.
• The surge is due to speculation around Bitcoin and Ether ETFs.
• ETFs could attract institutional money by allowing exposure without holding the actual cryptocurrencies.
  

The financial world is abuzz as Bitcoin and Ether options interest reach a historic milestone of $20 billion. This surge is not just a random fluctuation but a sign of growing interest and anticipation among investors.

The catalyst behind this excitement? Speculation surrounding the potential approval of Bitcoin and Ether Exchange Traded Funds (ETFs), which could revolutionize the way we engage with cryptocurrencies.

Imagine being able to gain exposure to these cryptocurrencies without the need to hold the underlying asset. That’s exactly what an ETF would allow, opening up a whole new world of possibilities for institutional money to flow into the cryptocurrency market.

Soaring Options Activity

Deribit options open interest (Laevitas)

The cryptocurrency market is witnessing a remarkable surge in options activity. Bitcoin and Ether options interest have reached a historic high of $20.64 billion. This surge is largely driven by the growing anticipation around the potential approval of a Bitcoin Exchange-Traded Fund (ETF). The combined notional open interest in Bitcoin and Ether options listed on the Deribit exchange, which holds a 90% share of global options activity, has surpassed the $20 billion mark. 

Over the past two weeks, Bitcoin has surged by 30%, reaching a price of over $35,000, and Ether has surged 17.8%, reaching over $1800. The combined trading volume of Bitcoin (BTC) and Ether (ETH) options increased by 443% in 2021, with a combined trading volume of over $387 billion. The Combined Market Capitalization of bitcoin (BTC) and Ether (ETH) is currently at $888 billion, resulting in an increase of 129% since 2021.

BTC and ETH price surge after ETF Speculations(TradingView)

As $4.5 billion in Bitcoin and Ether Options are set to expire on Deribit, the market is poised for further volatility. This soaring activity in options trading underscores the growing interest and confidence in the cryptocurrency market.

The speculation around the approval of Bitcoin and Ether ETFs has played a significant role in this surge. An ETF would allow investors to gain exposure to these cryptocurrencies without the need to hold the underlying asset. This has the potential to bring a wave of institutional money into the cryptocurrency market.

Conclusion

The unprecedented surge in Bitcoin and Ether options trading marks a significant milestone in the cryptocurrency market. The soaring activity in Bitcoin and Ether options trading underscores the growing interest and confidence in the cryptocurrency market. As we await further news on the approval of Bitcoin and Ether ETFs, one thing is clear – the world of cryptocurrency is evolving, and it’s more exciting than ever.