Options are taking a larger role in crypto derivatives as traders increasingly use them for hedging and volatility trading.

Crypto derivatives markets are moving toward two main products, perpetual futures and options. Perpetuals provide continuous leverage, while options are becoming more important for pricing and managing risk.

That shift is also visible in how traders are allocating capital across derivatives. A Glassnode study produced with Bybit found that options increased their share of Bitcoin notional open interest from about 25% to nearly 50%. Meanwhile, dated futures have lost ground in the crypto market.

Options Are Becoming More Important

Dated futures volume…