In an interview with Traders Magazine, Joshua Lim, Global Co-Head of Markets at FalconX, discusses how institutional investors are increasingly turning to crypto options as the market matures and trading strategies become more sophisticated.

Why are options becoming a more important part of institutional crypto portfolios?

Options are shifting from tactical overlays to core components of institutional crypto portfolios. Spot and futures are inherently linear; they fall short when investors need to precisely isolate volatility, generate structural yield, or express relative-value views without taking on outright directional risk.

The expansion of crypto ETFs has been a major catalyst for this shift. It hasn’t…