One of the largest derivatives trading exchanges, Deribit, first spotted a special phenomenon on Monday. The volume of ether (ETH) options was higher than the volume of bitcoin (BTC) options for the first time.
Options are financial instruments based on the value of the underlying assets. Bitcoin options on the value of bitcoin and ether options on the value of ether. With an options contract, the buyer has the option to buy or sell the underlying asset, depending on the type of contract that has been entered into. Where options differ from futures is the fact that with options the holder is not obliged to buy or sell if he does not want to.
On Monday, the total trading volume of bitcoin options on Deribit was $ 879.5 million. Ether comfortably surpassed this with a trade volume of no less than $ 1.32 billion. More than 50% more! Deribit himself stated that he had no opinion about the event.
If you look at the trading volume for the entire month of April on Deribit, you can still see that the trading volume of bitcoin options is at least four times higher than that of ether. Much remains to be done before ether takes over bitcoin’s lead in the longer term when it comes to trading volume.
This temporary shift fits well with the current market trend. Ether has outperformed bitcoin for a while. Where ether sets record after record, bitcoin seems to have a lot more difficult. The question is, therefore, whether the temporary first place of ether in terms of trading volume in options is just a precursor to a shifting long-term trend or whether it is just a minor anomaly in the bigger picture.