New Report: LATAM's rise in global crypto markets

Why IBIT Options Traders Paid a Premium for Protection

Bitcoin

Derivatives

30/09/2025

    Today we’ll explore how options on TradFi and Crypto markets are pricing risk. With the advent of spot crypto exchange-traded funds and options based on these products the two markets are converging in parts. However, discrepancies persist due to lower volumes and the unpredictable nature of risk events.

    Trend of the Week

    Since the launch of spot BTC ETFs traditional venues have been increasingly encroaching on crypto native platforms. Looking at the volume of spot BTC ETFs versus crypto exchanges shows that around 40% of the total volume traded on platforms and products available to U.S. retail and institutional investors comes from IBIT alone

    Now traditional players have turned their attention to options markets, with IBIT options picking up steam. While trade volumes are often comparable between IBIT and Deribit, there are some large discrepancies. One of those is around tail-risk pricing. IBIT tends to have a much higher skew at times, especially evident in January of this year.

    We explore why this “fear premium” exists on IBIT options and how at-the-money implied volatility is being priced. Sign up below for the full report.

    Want the full analysis?

    Subscribe to Kaiko Research Premium for more market insights.

    Get the full analysis

    Data Used In This Analysis

    Our industry-leading research is the direct result of combining our proprietary data with world-class in-house experts. Bringing the very best of Kaiko’s people and data together, we unlock the unique insights that form the basis for our discoveries and analysis. We believe in doing so, our data speaks for itself, helping both our clients and the wider industry get a better understanding of the crypto ecosystem, and the evolving trends and patterns in motion at a regional and global scale.

    • Market Explorer

      Price and transaction volume for centralized and decentralized exchanges.

    • Level 1 & Level 2 Market Data

      Tick and aggregated market data, from cryptocurrency exchanges.

    • Blockchain Monitoring Tool

      All users, all transactions, and all history for blockchain wallets.

    More From Kaiko Research

    • Bitcoin

      30/09/2025 Data Debrief

      Why IBIT Options Traders Paid a Premium for Protection

      Today we’re looking at how risk is measured in crypto, by comparing both traditional and native markets. With the advent of multiple spot crypto exchange-traded funds there’s also a plethora of new derivative offerings. How traders price risk in these markets doesn’t always align. We’ll explore this today by looking at options on Deribit and Cboe.

    • Indices

      22/09/2025 Data Debrief

      Not Just Bitcoin: Baskets Show The Wider Market Story

      As we approach the end of the third quarter, we’re casting an eye over the broader market and which individual assets are driving returns. Despite BTC languishing over the summer, as ETH and XRP outperformed it, BTC has still dominated the narrative. However, we found that it’s not just the original cryptocurrency that’s driving returns in the market right now.

    • ETF

      15/09/2025 Data Debrief

      Competition for Crypto Options Heats Up

      This week we’re diving into all things crypto derivatives, with a particular focus on options markets. Crypto derivatives markets have been dominated by native players over the past decade, but now competition is growing. We explore this growing competition and how options on traditional venues might offer broader growth opportunities for altcoins.

    • Layer 1

      08/09/2025 Data Debrief

      Corporate Treasuries Fuel Crypto Surge

      Digital asset treasury companies are powering crypto’s rally this year as firms like Strategy, BitMine, and Metaplanet steadily accumulate Bitcoin, Ethereum, and altcoins. Their persistent buying is supporting spot prices, attracting new investors, and fueling the rapid growth of listed crypto-treasury firms, especially across APAC.