Author: Frank Chaparro and RT Watson

Deribit nears expiry of $3.6 billion in crypto options contracts amid ‘rock bottom’ volatility regime

https://www.theblock.co/post/232067/deribit-nears-expiry-of-3-6-billion-in-options

While $3.6 billion worth of bitcoin and ethereum option contracts are set to expire this Friday on Deribit, the impact could be minimal as the market is enjoying one of its lowest levels of volatility all year.

About 85,000 bitcoin options contracts valued at $2.3 billion are set to expire on Friday. With a put call ratio of 0.38, there are likely more than two and half more calls outstanding than puts, according to Luuk Strijers, the chief commercial officer of the crypto futures and options exchange.

There are roughly 700,000 contracts for ethereum options valued at $1.3 billion that are also set to expire, he added.

The dollar amount of the options set to expire is sizable, but that doesn’t mean the market has a reason to panic, said Strijers.

“Implied volume remains at rock bottom level with DVOL trading at 50 for bitcoin and ethereum and shorter-dated even lower but climbing slightly,” he said. “Bitcoin and ethereum levels are the same which is historically rare.”

“We saw a similar rock bottom IV situation in January this year followed by a big spike afterwards,” Strijers added.

© 2023 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

MIAX completes acquisition of options exchange LedgerX

https://www.theblock.co/post/231595/miax-completes-acquisition-of-options-exchange-ledgerx?utm_source=rss&utm_medium=rss

MIAX said it has acquired LedgerX from Ledger Holdings Inc. as part of the bankruptcy proceedings of cryptocurrency exchange FTX.

The deal comes amid robust trading in the crypto options market, the arena in which LedgerX operates.

FTX US bought LedgerX in 2021 as part of a push into derivatives push in the United States. Through LedgerX, FTX US sought approvals to launch a wide range of crypto derivatives which they could then offer directly to users. LedgerX is registered with the Commodity Futures Trading Commission.

“The acquisition of LedgerX represents an important part of our growth strategy, expanding our ability to offer new and innovative products to the swaps and futures industry,” Thomas Gallagher, chairman and CEO of MIAX’s parent company Miami International Holdings, Inc. said in a statement. “We are pleased to complete this acquisition … as we continue to execute on our strategy of operating regulated financial markets both in the U.S. and internationally.”

Founded in 2014, LedgerX was an early entrant to the cryptocurrency options market. The firm, however, struggled to trade higher volumes. The company is led by CEO Zach Dexter.

© 2023 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.