Options are taking a larger role in cryptocurrency derivatives markets as traders increasingly allocate capital to hedging and volatility trading strategies. A study by Glassnode and Bybit found that options have nearly doubled their share of Bitcoin notional open interest, rising from approximately 25% to close to 50%.
The crypto derivatives landscape is consolidating around two primary products: perpetual futures and options. While perpetual futures provide continuous leverage trading, options are gaining importance for risk management and pricing strategies.
Shifting Market Dynamics
Dated futures have lost significant ground in the market, with volume now roughly 97% below 2021 levels, according to the Glassnode study. Perpetual futures have become the dominant leverage product, while options have expanded their presence in volatility trading and hedging applications.
The growth in options has persisted across different market conditions. Glassnode found that options gained market share in four of five market regimes examined since 2019, with the largest increase occurring during a prolonged bear market. This pattern suggests traders use options not only for directional positions but also to manage risk exposure.
Venue Concentration
The shift is also visible in where Bitcoin options trading occurs. Bybit's share of options volume across four crypto-native venues rose from below 10% to 28%, based on data through August 23, 2026.
Ether has become significant in Bybit's options activity, accounting for 32% of its options volume over the previous 90 days—the highest share among the four venues tracked. OKX recorded 26%, Binance 24%, and Deribit 12%. Bybit also maintained the highest Ether options volume among these venues for 143 consecutive days.
Beyond cryptocurrencies, Bybit held 97.1% of gold options open interest among tracked venues and maintained the largest tokenized gold perpetual market for 476 consecutive days.
Bybit's overall options book has grown substantially, expanding from $529 million in its first month to $2.33 billion, though growth has been uneven as options initially declined in share while perpetual activity expanded before recovering.
