Deribit, a dominant figure with an 85% share in the options market, has unveiled plans to introduce linear options for XRP, SOL, and MATIC by January. The decision reflects Deribit’s strategic vision to innovate and expand despite the market’s ebb.
Trade activity in bitcoin futures has significantly dropped this year, from $2 trillion initially to around $1.5 trillion by September. While many attributes this decline to the falling crypto values and lessened volatility, particularly when contrasted with 2021’s peaks, Deribit sees opportunity amidst the uncertainty.
Though conscious of the lukewarm market conditions, Luuk Strijers, Deribit’s Chief Commercial Officer, views this new offering optimistically, anticipating a volatility uptick. Such optimism isn’t unfounded. The crypto world is abuzz with expectations around the possible U.S. approval of Ether futures ETFs and Bitcoin spot ETFs. Such green lights could potentially reinvigorate the market’s volatility.
Strijers also nodded to Deribit’s intent to broaden its net by obtaining an EU brokerage license. Additionally, the exchange plans to diversify its cryptocurrency offerings beyond the established trio of Bitcoin, Ether, and USD Coin. If everything unfolds as projected, the company could move its base from Panama to Dubai, renowned for its crypto-accommodative stance.
The expanding horizon is also reflected in Deribit’s hiring plans. With a team strength of 115, they intend to onboard 12 new talents.
Bloomberg’s recent studies showcase volatility measures for giants like Bitcoin and Ether nearing historic lows. As Richard Galvin of Digital Asset Capital Management remarks on the sustained volatility reduction, Deribit’s altcoin linear options could emerge as a smarter hedging mechanism for well-rounded crypto portfolios, especially given Ether’s waning volatility.
Deribit, however, is not keen to be branded as a zero-fee spot trade platform competing with traditional token sale platforms. Strijers clarified that their primary objective is derivatives trading, stating, “Profits from spot trades aren’t our motivation. Our core interest is capitalizing on derivatives trading.”