Comparing Bitcoin Options on Deribit, IBIT, and Cboe
Summary
This comparison explains how Bitcoin options on Deribit differ from options tied to U.S. spot Bitcoin ETFs, including IBIT options and Cboe’s ETF index options. It covers the underlying products, exercise styles, contract sizes, collateral, settlement, trading venues, and margin approaches. ETF option strikes refer to the ETF or index level, so they must be translated into Bitcoin price terms when comparing exposures. The article also outlines how U.S. clearing makes many exchange-listed options fungible, in contrast to the described Cboe product and Deribit’s integrated venue model.
Examples illustrate how an IBIT call can result in ETF shares, while a Deribit option’s intrinsic value is paid in BTC. The document also gives a method for converting reported IBIT option volume into estimated notional exposure and names sources for market statistics. Its comparisons and figures reflect the article’s publication context; product terms and margin practices can change, and the article does not provide a comprehensive risk or pricing analysis.
Key ideas
- Deribit options reference Bitcoin directly, while IBIT and Cboe options reference ETF-based products.
- ETF-linked strikes and contract sizes require conversion before comparing their exposure with BTC options.
- Exercise style, collateral, settlement currency, and venue structure differ across the products.
- The article illustrates how a Deribit payout in BTC can differ from receiving ETF shares through an exercised IBIT call.
- IBIT turnover figures require adjustments to estimate notional exposure comparable with Deribit activity.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.