Crypto derivatives platform Deribit will offer a daily Bitcoin index options to its client base.
Announced this week, the new trading instrument will be listed on February 3. With a set expiry after two days, the listing of the options will be scheduled every day at 8 am UTC.
Deribit also detailed that the strike price intervals will be $125 and will offer a range of around 5 percent around the ATM level.
“These short dated expiries are specifically interesting for investors and traders with a short term view based on for example macroeconomic data or events,” the announcement stated. “Deribit will work with its market makers to ensure that highly competitive prices are available on screen.”
High demand for crypto derivatives
Deribit’s new offering can be seen as its attempt to keep its client base intact in a highly competitive crypto derivatives market, mostly with the influx of established players.
After the launch of the Bitcoin daily options, the platform will offer derivatives instruments expiring in the range of one day to nine months.
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Launched in 2016, Deribit offers digital asset futures, perpetuals, and options instruments. It dominates the crypto options market with a market share of close to 90 percent. Meanwhile, Bakkt is struggling with its Bitcoin options as the platform is seeing zero volume for a week.
It’s been 10 days since the last option trade on Bakkt 💤 pic.twitter.com/1xYiylC8fr
— skew (@skewdotcom) January 28, 2020
Bakkt’s options came ahead of the launch of the same by CME Group earlier this month, which is also nowhere close to Deribit.
Meanwhile, the exchange is also under the process of moving its base from the Netherlands to Panama. The move was forced by the recently enforced Fifth Anti-Money Laundering Directive (AMLD5) regulations in the continent, which according to the exchange, will cripple crypto businesses.