Kraken says simpler options can unlock crypto's next derivatives market
Kraken has launched cash-settled bitcoin and ether options for international clients, aiming to expand the crypto derivatives market beyond institutional incumbents. The exchange intends to simplify options trading to attract a broader base of users.
Why it matters
The expansion of accessible crypto derivatives is a key step in the institutionalization and maturation of digital asset markets.
Kraken has launched cash-settled bitcoin BTC $ 64,413.21 and ether (ETH) options, positioning the product as the first step in a broader push to grow, rather than simply compete for, the crypto options market.
The exchange on Thursday introduced European-style, USD-settled options on bitcoin and ether through Kraken Pro, initially via request-for-quote (RFQ). The contracts are available to eligible international clients outside of Europe, North America, and Australia, with a European rollout planned for a later date.
Alexia Theodorou, Kraken's director of derivatives, said the exchange sees crypto options as an underpenetrated segment compared with traditional financial markets, where options account for a much larger share of derivatives trading.
"Crypto options activity is still a fraction of what it is in traditional markets, but the gap is closing as professional and institutional capital continues to move into digital assets," Theodorou told CoinDesk in an interview.
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