BlackRock’s iShares Bitcoin Trust (IBIT) has officially overtaken Deribit as the top platform for Bitcoin options trading, signaling a major power shift in the cryptocurrency derivatives market. This milestone highlights how Wall Street’s entry into crypto is reshaping liquidity, institutional access, and long-term market dynamics.
IBIT Becomes the World’s Largest Bitcoin ETF
Launched in January 2024, IBIT has quickly grown into the largest Bitcoin ETF worldwide, now managing over $87 billion in assets. The fund’s rapid growth is creating a liquidity flywheel — where rising demand attracts more institutional investors, fueling even deeper participation in regulated markets.
- Assets Under Management (AUM): $87B+
- Expense Ratio: 0.25% (reduced to 0.12% for early inflows)
- Growth Record: Fastest ETF to hit $70B AUM in just 341 trading days
Open Interest in Options Surges Past Deribit
According to Bloomberg data, open interest in IBIT-linked options reached nearly $38 billion after last Friday’s expiry, overtaking Deribit’s $32 billion. This development is remarkable considering IBIT’s options only launched in November 2024.
Deribit, founded in 2016, had long been the dominant offshore platform for Bitcoin options. But with its recent acquisition by Coinbase for $2.9 billion, its market leadership is now under pressure from regulated U.S. products.
Why Institutions Prefer IBIT Over Offshore Exchanges
The shift toward IBIT highlights a structural change in Bitcoin trading:
- Regulated Market Access – Institutional players prefer compliance and transparency.
- Custody by Coinbase Prime – Ensures secure storage and reporting tailored for large investors.
- Hedging Capabilities – Treasurers and fund managers can now hedge exposure in a trusted environment.
This contrasts with offshore platforms like Deribit, which grew by offering high leverage and less regulatory oversight. While crypto-native traders still prefer Deribit’s flexibility, the institutional capital is flowing toward regulated ETFs like IBIT.
The New Landscape: Two Parallel Bitcoin Markets
Market analysts suggest the ecosystem is now splitting into two distinct systems:
- Traditional Finance-Backed Platforms – Anchored by ETFs like IBIT, attracting pension funds, asset managers, and corporates.
- Decentralized/Offshore Venues – Catering to speculative traders seeking leverage and fewer restrictions.
This dual structure is expected to define the future of Bitcoin trading, balancing both regulated growth and decentralized innovation.
Key Takeaway
BlackRock’s IBIT overtaking Deribit marks a turning point for Bitcoin markets. With record-breaking growth, strong liquidity, and institutional adoption, IBIT is setting new standards for how global investors access and hedge Bitcoin.
As traditional finance deepens its role, regulated ETFs are becoming the cornerstone of institutional crypto participation, while offshore platforms like Deribit continue to serve risk-driven traders.
