Crypto market Deribit hits open interest record of $25bn

Crypto market Deribit hit last week an open interest record of $25bn (£19.6bn), marking the latest small milestone in the gradual institutional adoption of digital assets.

Deribit broke $25bn of open interest for the first time on Friday when its open interest total reached $25.8bn. This total comprised $16bn of bitcoin options, $7.6bn of ethereum options and $2.2bn of perpetuals and futures open interest, according to the firm.

The new record came less than one month after the crypto market reported on November 16 a bitcoin options open interest record of $15bn, meaning the crypto market’s bitcoin options open interest had surpassed its futures open interest for the first time.

The firm’s chief commercial officer Luuk Strijers said last month the growth in the bitcoin options market, where Deribit holds an 85% market share, reflects the increasing maturity of the cryptocurrency market.

He said: “This development underscores the increasing preference for options as a strategic tool among traders whether for positioning, hedging or leveraging the recent surge in implied volatility. It is clear evidence of the market’s evolving complexity and Deribit’s role as a leading venue in this space.”

The increasing use of hedging instruments also reflects renewed confidence in the underlying cryptocurrency market over recent weeks where bitcoin hit on December 8 a two year high of $44,000.

Cryptocurrency prices have strengthened in recent weeks amid speculation the US equities regulator is about to approve the first spot bitcoin exchange-traded fund.

Robert Gaskell, a partner at London-based blockchain advisory firm Appold, said last month the approval of the US spot crypto ETF would be a catalyst for the long-awaited institutional adoption of digital assets.

Crypto market GFO-X secured on Monday $30m (£24m) in a funding round led by M&G Investments designed to support the institutional crypto platform through its planned launch early next year.

Speaking to FOW in August, Strijers said the firm’s planned move to Dubai underlined its commitment to regulated markets.