Deribit Aims to Launch $XRP, $SOL, $MATIC Options Amid Low Volatility

According to a report by Bloomberg, Deribit has announced that it will offer “linear options” on $XRP, $SOL, and $MATIC starting in January.

In an interview with Bloomberg, the Chief Commercial Officer Luuk Strijers, the Chief Commercial Officer, emphasized that the current low volatility in the digital asset market will not deter the company’s growth initiatives. Strijers also confirmed via social media that the firm is seeking to apply for a brokerage license within the European Union.

Strijers expressed concerns about whether the current market conditions are ideal for launching new products but remains optimistic about increased market volatility in January, coinciding with the launch of these new linear options.

The cryptocurrency derivatives trading volume has seen a decline, dropping from approximately $2 trillion at the beginning of the year to about $1.5 trillion in September, according to Bloomberg. This decrease is attributed to a slump in digital asset prices and volatility, especially when compared to the highs of 2021.

Bloomberg reports that traders are looking forward to the potential market impact of recently launched Ether futures exchange-traded funds and the possible approval of Bitcoin spot ETFs by U.S. regulators. These developments are expected to reintroduce volatility into the digital asset market.

For the first time, Deribit’s expansion will include options beyond Bitcoin, Ether, and USD Coin. Bloomberg adds that Deribit, currently based in Panama, plans to relocate to Dubai, a jurisdiction known for its crypto-friendly policies, once it secures the necessary license. Strijers also told Bloomberg that Deribit currently employs 115 people and has plans to add another dozen to its workforce.

Per Bloomberg’s report, the volatility metrics for leading cryptocurrencies like Bitcoin and Ether are at near-historic lows. Richard Galvin, co-founder at Digital Asset Capital Management, noted that the volatility of these assets has been consistently decreasing for about a year. He believes that the introduction of altcoin linear options will provide a more effective hedging strategy for diverse crypto portfolios, especially given Ether’s reduced volatility.

Bloomberg states that Deribit holds a commanding 85% market share in the options space, with competitors like OKX, Binance, and Bybit making up the remainder. The exchange primarily serves institutional clients, which apparently account for about 85% of its trading volume.

Earlier this year, Deribit launched a zero-fee spot crypto trading platform. According to Strijers, the primary objective of this platform is to facilitate derivatives trading, rather than to compete in the token buying and selling market:

That’s why we do it for free, not because we don’t like the potential revenues, but because we aim to generate revenue primarily through derivatives trading.”

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