BlackRock’s IBIT Surpasses Deribit in Bitcoin Options

BlackRock’s iShares Bitcoin Trust (IBIT) has taken the Bitcoin options lead, overtaking Deribit in a move that highlights how Wall Street is reshaping crypto markets.

IBIT’s open interest in Bitcoin options reached nearly $38 billion after Friday’s expiry. In comparison, Deribit recorded $32 billion. This marks the first time Deribit has lost its top spot since its launch in 2016.

A Fast Climb to the Top

IBIT options only launched in November 2024. Yet, within less than a year, they have overtaken the offshore giant that long dominated the space. The shift shows how fast liquidity is moving from lightly regulated exchanges to products rooted in U.S. financial markets.

BlackRock has positioned IBIT as the world’s largest Bitcoin exchange-traded fund. It currently manages over $87 billion in assets. Because of this scale, liquidity around the ETF has grown rapidly.

As liquidity rises, institutional players gain confidence to join the market. Then, increased participation deepens liquidity further. This ETF liquidity cycle has created powerful momentum for IBIT’s growth.

From Offshore to Regulated Markets

For years, traders relied on offshore platforms such as Deribit for Bitcoin options. Those venues offered high leverage but operated with fewer safeguards. Now, however, regulated U.S. products are attracting a new wave of demand.

Institutions prefer regulated structures because they provide clearer reporting, secure custody, and compliance with U.S. laws. Coinbase Prime manages custody for IBIT, which reduces hurdles around wallets and private keys.

As a result, the market is splitting into two. On one side are speculative offshore venues. On the other side are regulated ETFs like IBIT that anchor institutional flows.

The Role of Cost and Structure

IBIT’s cost structure has also driven growth. The fund charges a 0.25% expense ratio but temporarily lowered this to 0.12% for early investors. That competitive pricing helped IBIT grow faster than any ETF in history.

It reached $70 billion in assets in just 341 trading days. No other exchange-traded product has grown at such a pace. This shows unprecedented investor demand for regulated Bitcoin exposure.

Institutional Confidence in Options

Another key factor is IBIT’s options market. Institutions and corporate treasurers can now hedge exposure in a regulated setting. Because they need tools to manage risk, IBIT’s options have become a major draw.

Deribit, meanwhile, still attracts crypto-native traders who want high leverage. It was recently acquired by Coinbase for $2.9 billion, showing it retains strong value. Yet, its decline in market leadership reveals how quickly traditional finance has captured ground.

What Comes Next

Analysts believe IBIT’s rise marks a structural shift. While offshore platforms remain active, most institutional money will likely stay with regulated products. That dynamic could shape Bitcoin’s market for years to come.

As demand grows, the split between offshore and traditional finance could deepen. On one path, risk-heavy platforms like Deribit serve traders seeking leverage. On the other, regulated ETFs like IBIT continue to attract mainstream investors.

Either way, BlackRock’s success with IBIT highlights how far crypto has moved into Wall Street’s domain. The Bitcoin options lead is no longer offshore. It now sits with the largest asset manager in the world.

#CryptoMarkets#IBIT#InstitutionalFinanceBitcoinBlackRockblockchainDeribitETFs