Deribit plans to launch options trading for SOL, XRP, and MATIC, increasing cryptocurrency hedging tools.

Despite the significant decrease in digital asset volatility, the largest cryptocurrency options exchange, Deribit, still plans to add options trading for SOL, XRP, and MATIC for customers in January next year. Deribit is preparing to relocate its headquarters to Dubai after obtaining a license and is recruiting more personnel.

Digital Asset Prices and Volatility Continue to Decline

According to a report by Bloomberg, Deribit's Head of Business, Luuk Strijers, stated that Deribit plans to start offering options trading for SOL, XRP, and MATIC in January next year. He mentioned that the lack of volatility "will not delay our plans" and proudly stated that the introduction of these three options products by Deribit will increase market volatility!

Due to the impact of low digital asset prices and continuous decline in volatility, the trading volume of cryptocurrency derivatives has decreased from around $2 trillion at the beginning of this year to approximately $1.5 trillion in September.

The implied volatility of the two most important tokens, Bitcoin and Ethereum, remains near historical lows. The BitVol and EthVol T3i are indicators measuring the 30-day volatility of these tokens, both of which have dropped by more than half from their 2023 highs.

Although traders had hoped for a positive response to the recent launch of Ethereum futures ETF and the eventual approval of a Bitcoin spot ETF by U.S. regulatory authorities, the market reaction seems to be less than expected.

Ethereum futures ETF trading volume falls short of expectations! Issuer VanEck: Just like your jpeg

High Profits in Derivatives, Everyone Wants a Piece of the Pie

According to the company, Deribit holds approximately 85% market share in options, with around 85% of the trading volume coming from institutional clients.

Deribit launched a zero-fee spot cryptocurrency trading platform in early 2023. Strijers stated that the purpose is to promote derivatives trading rather than venture into token trading.

We offer spot trading for free not because we don't like potential revenue, but because our goal is to generate income through derivatives trading.

Derivatives are one of the most profitable areas in the cryptocurrency field, which has led to recent competition between Gemini and Coinbase to launch offshore derivatives exchanges.

U.S.-based crypto firms Coinbase and Gemini both launch offshore derivatives exchanges

Richard Galvin, Co-founder of Digital Asset Capital Management, stated:

Over the past year or so, volatility has been continuously declining. Options on altcoins will be very helpful as Ethereum's volatility is relatively low and is no longer an effective hedge for a broader portfolio of crypto assets.

According to Deribit's website, BTC and ETH currently account for 90% market share in the cryptocurrency options market.

Preparing to Relocate Headquarters to Dubai and Apply for Brokerage License in EU

Luuk Strijers mentioned that once they obtain the necessary licenses, Deribit plans to relocate its headquarters from Panama to Dubai, as Dubai is a jurisdiction relatively friendly to cryptocurrencies. Deribit currently has 115 employees and plans to hire an additional 12 employees.

He also mentioned that the company plans to apply for a brokerage license in the EU.