According to Glassnode, one of the industry's leading on-chain market research platforms, the amount of open interest in Bitcoin (BTC) options contracts surpassed futures contracts for the first time in history.
Open position is the total value of contracts that have not been concluded yet.
Glassnode Announces the First Time Situation in Bitcoin
Glassnode reported on Twitter that as of April 8, 2023, open interest in Bitcoin options contracts is $ 10.3 billion, and open interest in futures contracts is $ 10 billion. The platform also stated that open interest in futures has remained relatively stable in 2023, while open interest in options has increased significantly.
This trend shows that users are buying more call options, which are contracts that give the buyer the right to buy Bitcoin at a certain price and time in the future.
Call options are often used to speculate on higher Bitcoin prices or hedge against downside risks.
Glassnode's derivatives data covers various exchanges and platforms that offer Bitcoin futures and options trading, such as CME, Bakkt, Deribit, OKEx, BitMEX, Huobi, Binance, and others.
Bitcoin futures and options are derivatives that give traders exposure to Bitcoin's price movements without owning the underlying asset. They also provide liquidity, price determination and risk management functions for the BTC market.
The difference between futures and options is that futures contracts require you to buy or sell the underlying asset at a specific price and date in the future, whereas options contracts give you the right, not the obligation, to buy or sell the underlying asset at a specific price and date in the future.
*Not investment advice.