Deribit, a leading crypto options exchange, is gearing up for a historic week as it anticipates over $15 billion worth of options to expire for Bitcoin and Ethereum.
This milestone, marking one of the largest expirations in Deribit’s operational history, is expected to occur this Friday, encompassing a significant portion of the platform’s total open interest (OI).
Of the $15 billion in options set to expire, $9.5 billion represents Bitcoin (BTC) options open interest out of a total of $26.3 billion, while $5.7 billion pertains to Ethereum (ETH) options open interest out of $13.2 billion. These figures account for 40% and 43% of the total OI, respectively.
Deribit provided insights into the impact of current market conditions on these expirations, revealing that a substantial portion of BTC and ETH options will expire in the money, especially at a price level of $70,000 for BTC. This suggests potential upward pressure or volatility in the underlying assets.
Moreover, Deribit observed a contango in the volatility surface for both BTC and ETH, with implied volatility (IV) levels indicating expectations of relatively stable prices until expiration.
In addition to options expirations, Deribit disclosed that $465 million in BTC March Futures and $230 million in March ETH Futures are set to expire, totaling approximately $695 million out of the $1.9 billion currently outstanding.
The platform also highlighted the remarkable open interest in its dated futures, reaching $1.9 billion, the highest in any crypto market. This surge in interest is attributed to the significant returns generated, fueling anticipation for substantial trading activity around the expiry period.
As Deribit braces for this record-breaking options expiry, market participants are closely monitoring developments, expecting potential volatility and significant trading opportunities in the coming days.
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