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Crypto exchanges race to build out options trading

Crypto exchanges race to build out options trading

New Capabilities

Kraken launches cash-settled Bitcoin and Ether options as rivals fight for a market Deribit still dominates

Today: Kraken launches Bitcoin and Ether options

Overview

Kraken now lets traders bet on Bitcoin and Ether prices without touching a single coin. On July 20, 2026, the exchange launched cash-settled options on its Kraken Pro platform, settled entirely in US dollars.

The design borrows from traditional finance: no crypto collateral, no liquidation math tied to a volatile coin. Kraken is chasing a market one rival, Deribit, has controlled for years — and that Coinbase bought its way into for $2.9 billion.

Why it matters

Options let ordinary traders hedge crypto bets or amplify them. The exchange that owns this market controls where billions in trading fees flow.

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Key Indicators

85%
Deribit's share of BTC/ETH options
Deribit held roughly 85% of global open interest in Bitcoin and Ether options in early 2026.
$2.9B
Coinbase paid for Deribit
The cash-and-stock deal closed in August 2025; a rising share price pushed its value to about $4.3 billion.
30+
Currencies accepted as collateral
Kraken's options accept collateral in more than 30 currencies under portfolio margin.
75%
US volume Bernstein expects 3-4 platforms to control by 2027
Analysts at Bernstein forecast a small group of regulated venues will dominate US derivatives flow.

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People Involved

Organizations Involved

Timeline

May 2025 July 2026

3 events Latest: Today
  1. Kraken launches Bitcoin and Ether options

    Today New Capabilities

    Kraken rolls out European-style, USD-settled BTC and ETH options on Kraken Pro, starting with request-for-quote access for eligible international clients.

  2. Coinbase closes the Deribit deal

    Money Moves

    The acquisition finalizes with $700 million in cash and 11 million shares, giving Coinbase Deribit's options liquidity.

  3. Coinbase agrees to buy Deribit

    Money Moves

    Coinbase announces a $2.9 billion cash-and-stock deal for Deribit, the top crypto options venue.

Historical Context

2 moments from history that rhyme with this story — and how they unfolded.

December 2017

CME lists Bitcoin futures (2017)

The Chicago Mercantile Exchange, a regulated US derivatives market, launched cash-settled Bitcoin futures. It let institutions bet on Bitcoin without holding it, using a familiar contract format.

Then

The launch coincided with a Bitcoin price peak, then a long slide through 2018.

Now

CME futures became a durable institutional on-ramp and a benchmark for later crypto derivatives.

Why this matters now

Like Kraken's options, CME's move bet that traditional-finance formats would pull professional money into crypto. The format, not just the asset, drove adoption.

November 2018

CME acquires NEX Group (2018)

CME bought trading-technology firm NEX Group for about $5.5 billion to widen its reach across markets. The deal folded a rival's liquidity and infrastructure into a larger exchange.

Then

CME gained a bigger footprint in foreign-exchange and fixed-income trading.

Now

It reinforced a pattern of exchanges buying scale rather than building it.

Why this matters now

Coinbase buying Deribit follows the same logic: acquire the dominant venue's liquidity instead of competing for it slowly. Kraken chose to build instead.

Sources

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