TL;DR
- Election-Driven Options: Deribit is launching Bitcoin and Ethereum options tied to the US 2024 Elections, expiring on November 8, to help traders navigate anticipated market volatility.
- Market Impact: The failed assassination plot against ex-President Trump and his potential re-election have significantly influenced the crypto markets, with traders closely monitoring the election’s impact.
- Institutional Interest: Institutional participation is rising, with notable inflows into Bitcoin ETFs, highlighting growing interest and confidence in the crypto market.
Deribit, a top crypto exchange for derivatives, is gearing up to launch Bitcoin and Ethereum options tied to the election. With more than $2 billion in open interest in its perpetual and futures markets in the last day, Deribit has been a major force in the crypto options arena since 2020. Now, it’s looking to take advantage of the market mood leading up to the US presidential election.
Early Introduction of 8 November US ELECTION Expiry 🇺🇸
Based on client demand, we have decided to introduce the 8 November 2024 options expiry ahead of the regular introduction timing.
The early introduction is aimed at enabling our clients to position themselves effectively… pic.twitter.com/FAkCkROUwr
— Deribit (@DeribitExchange) July 16, 2024
The failed assassination plot against ex-President Donald Trump has sparked a surge in the cryptocurrency markets. Traders are keeping a close eye on the upcoming US 2024 Elections, as they are anticipated to have a significant impact on market trends.
In response to this heightened interest, Deribit is launching options contracts for Bitcoin and Ethereum that will expire on November 8, just three days after US citizens cast their votes for the President.
Trading of these election-related options will commence on July 18, allowing clients to strategically position themselves ahead of the anticipated volatility. Deribit’s official Twitter account announced the early introduction, emphasizing its purpose:
“The early introduction is aimed at enabling our clients to position themselves effectively for the upcoming November 5 US elections, speculate, hedge, and more.”
Deribit’s Dominance and Client Needs
Deribit’s impressive open interest figures underscore its significance in the crypto options market. Since 2020, the exchange has accounted for a substantial 70% of the $35.7 billion total Bitcoin options trading volume in April 2024.
The addition of election-related options further expands Deribit’s suite of trading products, which have evolved over the years to meet the diverse needs of its clients. President Donald Trump’s unwavering support for the crypto industry has caught the attention of investors.
If re-elected, Trump has promised crypto-friendly policies and has even expressed interest in boosting Bitcoin mining in the USA. As a result, the Bitcoin market is gearing up for a major rally in anticipation of Trump’s potential return to office.
Institutional participation is also on the rise, with spot Bitcoin ETF inflows reaching $422 million on Tuesday, June 16, the highest in six weeks. Blackrock’s IBIT alone witnessed significant inflows, pushing its assets under management (AUM) to over $18.5 billion since inception.
At the time of writing, Bitcoin (BTC) is trading just below the $65,000 mark, increasing nearly 2% in the last 24 hours. Ethereum (ETH) is also reporting a nearly 2% gain, exchanging hands at around $3,500.
In summary, Deribit’s election-driven options provide a timely opportunity for investors to navigate post-election volatility, while the crypto market braces itself for potential policy shifts under a Trump reappointment.
