Bitcoin (BTC) Options Expiring This Friday Will Settle Billions of Dollars in Open Interest

The impending settlement, though big, may not yield significant market volatility, the exchange told CoinDesk.

Deribit will see a large round of options expire on Friday, but the impending settlement, though big, may not yield significant market volatility, the exchange told CoinDesk.

According to Deribit metrics, over 139,000 BTC option contracts, valued at $12.13 billion and constituting nearly 45% of the total active BTC contracts across all expiries, are set for settlement this Friday.

Further, more than 65% of the total open interest is in call options, which provide buyers with an asymmetric bullish exposure, while the remaining is in put options, offering downside protection.

Usually, such large quarterly expiries are known to generate market volatility. However, in the buildup to the expiry, the bitcoin 30-day implied volatility index (DVOL) has been showing a sustained decline. From an annualized 62%, the index has decreased to 48% in recent weeks, indicating lower volatility expectations.

Similarly, the annualized perpetual futures basis on Deribit stands at about 5%, which signals a calmer funding environment.

“Despite the size of the expiry, the overall setup—low DVOL, moderate basis and balanced options positioning—suggests a relatively subdued expiry unless external catalysts emerge,” Deribit CEO Luuk Strijers told.

Some downside hedging is visible, according to the options skew, which measures the difference in implied volatility (pricing) for calls versus puts.

“3-Day Put-Call Skew is Slightly Positive indicating some immediate Downside Protection demand while 30-Day Put-Call Skew is slightly Negative indicating a more bullish outlook over the Medium Term,” said Strijers.

Also expiring on Friday is ether (ETH) options to the tune of $2.8 billion.