Deribit hits volume, open interest records in crypto derivatives

Deribit hit new records for trading volume and open interest last month as the crypto derivatives market secured this week regulatory approval in Dubai.

Deribit, which trades futures and options on various cryptocurrencies including bitcoin, said on Thursday its total turnover was $141bn (£111bn) in March, which was a new record and nearly one fifth higher than the previous benchmark in May 2021.

The Dubai-based market said its open interest hit $40bn for the first time last month while the March quarterly expiry was also valued at $15bn, its largest on record.

The Deribit volume records came as the bitcoin price hit an all-time high of $73,130 in mid-March before nearing that level again at the end of last month.

The trading volume records emerged as Deribit said this week it has secured conditional regulatory approval as a Virtual Asset Service Provider from Dubai’s Virtual Asset Regulatory Authority (VARA), making Deribit the latest market to secure this approval from the Dubai authority.

Currently, Binance FZE, TOKO FZE and Trek Labs Ltd FZE have active status to provide exchange services, according to the VARA website.

The regulatory approval came as Deribit confirmed the appointment of Luuk Strijers, the company’s former chief commercial officer, as chief executive officer.

Deribit has also appointed Dennis Dijkstra, the former chief executive of Flow Traders, and Willem Meijer, the former head of Dutch options market The Order Machine (TOM) as non-executive directors.

Strijers said: “Being appointed CEO at this crucial time is a huge honour. VARA’s progressive regulatory framework opens up vast opportunities in the digital asset realm.”

“Our strong position in the crypto options market reflects the trust our clients have in us. I’m thrilled to work with our loyal clientele and drive Deribit’s innovation, as we continue to lead in the evolving crypto marketplace,” the CEO added.

Crypto experts said last month the market has largely priced in the April 19 bitcoin “halving” event but the outlook beyond that is mixed as producers seek to maintain profitability.

Deribit’s open interest passed in December $25bn for the first time which Strijers said underlined traders’ preference to use options for positioning or hedging in the crypto market.