Binance

1 days agoNews Editor

Bitcoin Whales Pile Into Short-Dated Puts After Binance Security Breach

Bitcoin options traders moved quickly to buy downside protection after Binance disclosed a security incident that the exchange estimated would have a total impact of about $6.3 billion. According to CoinDesk, institutional derivatives liquidity network Paradigm saw roughly $590 million in block BTC options notional trade within about eight hours of the breach, with flows clearly tilted toward puts. The activity accounted for about half of Deribit’s BTC block options volume over the same period. The positioning was concentrated in strikes close to spot, mainly between $74,000 and $78,000, with expiries clustered around the current week and mid-November. That pattern suggested traders were hedging against a further near-term pullback rather than paying for distant crash protection. Paradigm’s Nicolas Quatravaux said the first large order appeared at 20:38 UTC, around 15 minutes after the first outflows from Binance wallets and before the news became public. Deribit also saw heavier bearish positioning, including a $190 million multi-leg put structure spanning November and December, while one-week skew briefly rose to about 18% during Friday’s Asian session.

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Coinbase

2 days agoNews Editor

Coinbase derivatives head outlines Deribit integration, options flows and market outlook

Luuk Strijers, Coinbase’s head of international derivatives and former Deribit CEO, said the exchange group has already completed key parts of the Deribit integration, including a matching engine upgrade and the merger of Coinbase International Exchange with Deribit into Coinbase Global Exchange for non-U.S. markets. He said median order round-trip latency has been cut to about 75 microseconds, roughly 50 to 60 times faster than before, with tighter spreads and better liquidity showing up in the first weeks after the upgrade. Strijers said the strategic case for the deal was scale. Deribit had been strong in crypto options but served a relatively narrow user base, with about 80% institutional clients and 20% sophisticated active traders. Coinbase’s custody business, regulated entities, broker network and global retail reach, he said, give Deribit a path into markets it previously struggled to access, especially the U.S. He also said new money entering crypto options has been limited over the past year, so Coinbase is focused on activating assets already held in custody. On market direction, Strijers pointed to BTC call open interest around $90,000 and $95,000, annualized futures basis near 5.5%, and options skew as signs the market still leans modestly bullish over the next six to 12 months, though without a strong one-way consensus.

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QCP

1 months agoNews Editor

QCP says cross-asset pressure hit the open as Bitcoin fell to $82,800

QCP said global markets opened under broad cross-asset pressure as investors cut risk exposure, with losses showing up across equity futures, gold and Bitcoin rather than a clear shift into traditional safe havens. In premarket trading, the Nasdaq 100 fell from 744.45 to 737.76, gold dropped from $4,260 to $4,147, and Bitcoin slipped from $84,500 to $82,800. The U.S. dollar index also moved lower. According to QCP, the pattern points to broad deleveraging instead of classic defensive repositioning. The firm linked the move primarily to geopolitics after the United States rejected a ceasefire-related proposal involving the Strait of Hormuz over the weekend, reviving concerns about energy supply disruptions and pushing Brent crude sharply higher. QCP also flagged a packed U.S. macro calendar this week. After the Federal Reserve’s recent rate hike, the PCE price index and the nonfarm payrolls report are seen as key releases, with markets highly sensitive to any data that could shift expectations for future monetary policy adjustments. In crypto, front-end implied volatility remained elevated in options markets, dealers were pricing downside protection, and spot Bitcoin ETF flows appeared hesitant during the wider liquidation.

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Crypto Options

1 months agoNews Editor

Crypto options overtake futures in open interest, marking a shift in derivatives markets

Crypto derivatives are moving away from an era dominated by perpetual futures. The article argues that options, long overshadowed by perps because of their complexity and weaker capital efficiency, have reached a turning point as open interest in crypto options has, for the first time, exceeded that of crypto futures. It traces the old structure of the market, from Deribit’s early options venue and Binance’s add-on options product to the rise and collapse of DeFi options vaults such as Ribbon Finance, Friktion, and Knox. A major catalyst, according to the piece, was the Oct. 10, 2025 selloff, when forced liquidations on exchanges exposed structural weaknesses in perpetual contracts, especially path dependence and liquidation mechanisms that could wipe out delta-neutral basis trades during intraday stress. Since then, new market structure has emerged: Derive rebuilt around a central limit order book with RFQ and portfolio margin, Nasdaq-listed IBIT options quickly surpassed Deribit in open interest, and Coinbase acquired Deribit, bringing a leading offshore venue closer to the U.S. regulatory perimeter. The article also stresses that this growth is concentrated in regulated, centrally cleared venues rather than DeFi. On-chain options still account for less than 1% of total volume. Even so, tighter basis yields, lessons from the FTX collapse, and the composability of on-chain settlement are presented as forces pushing the options market into a new phase.

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Crypto Options

1 months agoNews Editor

Crypto options overtake futures in open interest as market structure shifts

Crypto options, long overshadowed by perpetual futures, are moving back to the center of the derivatives market. In the article, author Vaidik Mandloi argues that the shift is no longer a niche story: options open interest has, for the first time, surpassed crypto futures, helped by a sharp rise in activity on Deribit and the rapid launch of IBIT options on Nasdaq. Since the start of 2024, combined bitcoin options open interest across Deribit and IBIT has grown about tenfold to $80 billion. The piece traces that change back to several forces. Perpetual futures, once dominant because they were simpler and more capital-efficient, showed structural weaknesses during the Oct. 10, 2025 sell-off, when liquidation engines and auto-deleveraging exposed supposedly market-neutral traders to directional risk. At the same time, options infrastructure improved. Derive rebuilt around a central limit order book, RFQ functionality and portfolio margin, while regulated central clearing gave institutional traders a framework closer to traditional finance. Mandloi also points to shrinking basis-trade yields, down from 25% annualized in 2021 to 4.46%, lessons from the FTX collapse, and the composability of onchain settlement. Even so, the current boom is concentrated on regulated, centrally cleared venues rather than DeFi. The article’s core claim is that crypto options are benefiting from a real repricing of risk rather than a temporary burst of speculation.

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Coinbase

2 months agoNews Editor

Coinbase Rolls Out Over 170 Derivative Contracts for UK Professional Investors

Coinbase is opening more than 170 derivative contracts to eligible UK professional investors, covering crypto, commodities, equities and forex. The lineup includes futures, perpetuals and crypto options, with perpetuals offering up to 50x leverage. The rollout will happen over the coming weeks and months, via CB Payments Ltd.'s investment services permission, following Coinbase's UK investment services authorization in July. The FCA will impose requirements on financial soundness, capital, stress testing and market integrity.

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Coinbase

2 months agoNews Editor

Coinbase opens UK derivatives trading for professional clients with leverage of up to 50x

Coinbase said Tuesday it is bringing derivatives trading to eligible professional investors in the UK, with more than 170 contracts across crypto, foreign exchange, equities, and commodities. The lineup includes perpetuals, dated futures, and crypto options. Perpetual contracts cover the full 170-plus asset range, trade around the clock, and offer leverage of up to 50x, while dated futures go up to 20x. Crypto options are limited to crypto underlyings and include calls, puts, and both single-leg and multi-leg strategies, with payoff diagrams built into the interface. The rollout will be gradual and limited to investors classified as professional clients. Coinbase said the launch is enabled by the investment services authorization it obtained from the UK Financial Conduct Authority on July 7, commonly referred to as a MiFID licence, which allows it to offer instruments beyond crypto. The move follows Coinbase’s March expansion of crypto futures to 26 European countries under MiFID II, where leverage reached up to 10x. The company tied the UK launch to its “Everything Exchange” strategy, which aims to combine crypto, stocks, derivatives, and prediction markets in one app. Coinbase also pointed to global crypto derivatives volumes, which it said routinely run at 4.4 times spot market volumes. The launch comes days after Coinbase introduced 24/5 U.S. stock trading in the UK and opened perpetuals to wholesale clients in Australia.

2090

GSR

2 months agoNews Editor

GSR says most DAO treasuries remain heavily concentrated in native tokens

A new report from GSR says most decentralized autonomous organizations, or DAOs, still carry a major structural weakness in treasury management: roughly 70% of treasury assets are held in their own native tokens. According to the report, that concentration can create a procyclical negative feedback loop. When a project’s token falls, treasury value declines at the same time that protocol revenue and market activity come under pressure, increasing financial strain. GSR also said many teams only look for hedges after token prices have already dropped. By that stage, implied volatility in the market is often higher, making downside protection meaningfully more expensive. To address that problem, the firm recommends separating operating reserves from long-term token holdings and considering collar strategies to build downside protection. In GSR’s view, wider use of hedging by crypto projects could lift options market trading volumes in the short term, while having limited effect on spot prices. Over the medium term, if DAO treasury structures improve, the report says that could reduce systemic selling pressure across the market.

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