The Bitcoin BTC$125,251.66 options market has grown so large and so structurally diverse that it is now influencing the price of bitcoin itself, according to a report by trading firm FalconX.

Open interest in BTC options has swelled to nearly $80 billion, up from around $8 billion at the start of the year, putting it on par with bitcoin’s long-established futures market. That level of growth marks a shift in how traders express views and manage risk in crypto.

Options activity, once a secondary signal, now functions as a key input for market participants trying to read or anticipate moves in the underlying asset, FalconX said. Unlike spot trades, which show where prices are now, options reveal how investors are positioning around future moves.

Two vehicles are driving the trend, according to the trading firm: options exchange Deribit and options BlackRock’s iShares Bitcoin Trust (IBIT), which trade on the Nasdaq. Deribit remains the go-to for crypto-native traders, with short-dated options and round-the-clock risk management. IBIT, meanwhile, has quickly become a heavyweight in institutional flow, even matching Deribit’s open interest within its first year. Its options are typically longer-dated and more call-heavy, aligned with hedging strategies, structured products and yield-enhancing overlays used in traditional finance.

The diverging profiles hint at who is trading and why. A hedge fund chasing volatility may lean into Deribit’s weekly cadence. A pension fund or asset manager, on the other hand, might be using IBIT to buy long-term upside exposure with limited downside.

Put/call ratios reinforce the split. Deribit’s ratio sits around 0.5–0.6, indicating a balance between puts and calls. On IBIT, it has hovered around 0.3, reflecting a tilt toward bullish strategies and structured positioning, according to FalconX.

Implied volatility, another core metric, has also trended lower throughout 2025, the report found. On the surface, that might suggest complacency. But the spread between implied and realized volatility remains intact, meaning option sellers are still earning typical premiums and the market isn’t mispricing risk. This dynamic has made short-vol strategies attractive, but it may not last. A spike in realized volatility, triggered by a macro shock or regulatory change, could flip that setup quickly.

The divergence in volatility between bitcoin and ether ETH$4,671.81 adds another layer. While both assets used to move in sync, ETH implied volatility has stayed firmer, supported by staking and DeFi-related flows. BTC, by contrast, has seen steady supply from miners and other large holders selling options to generate income, pushing its implied volatility lower.

FalconX’s report concludes that crypto options are no longer a niche. Their size, participant mix and strategic use now make them a vital signal for anyone trying to understand or anticipate market moves. Traders, allocators and risk managers increasingly watch two dashboards: Deribit for short-term, event-driven risk, and IBIT for longer-term institutional positioning.