Crypto Derivatives Pivot to Options as Bybit Gains Market Share

The shift in market structure marks a transition from directional betting to complex volatility management. Data shows that while dated futures have largely vanished—with volumes sitting 97% lower than in 2021—perpetuals and options have absorbed the liquidity. According to Frederik Theissen, head of research at Glassnode, this trend confirms that traders are increasingly using options to hedge downside risks and price specific market events rather than relying solely on rising asset prices.

Bybit’s expansion has been particularly aggressive. Its share of the four-venue Bitcoin options volume pool has nearly tripled, growing from below 10% to 28%. Unlike venues that rely on stagnant open interest, Bybit’s growth is driven by high-frequency turnover, suggesting a more liquid and active trading environment. Beyond Bitcoin, the platform maintains a dominant lead in Ether options and tokenized gold, holding the largest perpetual book for gold for 476 consecutive days. Sean Ballard, head of derivatives at Bybit, attributes this to the platform’s focus on building infrastructure that aligns with modern price discovery, including industry-first innovations like options on perpetual contracts.