Open Interest of Ethereum Options Close to $500m
Cryptocurrency, News

Open Interest of Ethereum Options Close to $500m

Cryptocurrency options have become more popular this year with investors? wide move away from margin trading towards alternative investment tools.

In recent times, the Ethereum options market has been recording a huge growth such that the aggregate open interest is currently moving speedily towards $500 million, based on data provided by the analytics platform Skew.

This increase in the value of Ethereum options open interest could be due to the volatility seen in the price action of Ethereum in recent weeks.

Deribit still records the vast majority of this open interest, as the renowned trading platform is leading the cryptocurrency options market at the moment. The trading platform accounts for 91 percent of this aggregate outstanding OI with the number of open ETH contracts on the platform now above one million.

?Total ETH options open interest on Deribit now exceeds 1 million contracts with a notional value of ~USD 424 million. This represents a 91% market share on Deribit,??said Skew.

The growth in open interest became more remarkable towards the end of last month, when the value of the aggregate open interest for Ethereum options was under $200 million.

At the moment, many of the contracts on Deribit platform expire on August 28th, September 25th, or December 25th. The chart provided by Skew shows that traders are now placing a sub-6 percent chance on the price of Ethereum attaining levels of more than $1,000 for the December 25th contract expiry.

Likewise, traders are placing a 41% chance on Ethereum price attaining $420 or above by the end of 2020, suggesting that numerous traders anticipate a dip from its current price levels.

The growth in open interest and investor involvement within the options market grows will have an impact on the price dynamics of Ethereum, even as several cryptocurrencies are displaying macro strength.


Sudarshan M is a long time crypto-enthusiast. Pulled in by bitcoin early on, it did not take long for Sudarshan to divert all of his academic attention from business studies to blockchain by doing his Masters and eventually pursuing his PhD in the subject.