Traders are disproportionally favoring options over futures for Bitcoin compared to Ethereum

Institutional adoption bolsters Bitcoin's options market, widening the gap with Ethereum.

Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.

The disparity between Bitcoin and Ethereum's options/futures open interest ratio is striking, with Bitcoin consistently taking the lead. Despite both experiencing growth, Bitcoin's options activity vastly outpaces Ethereum's, hinting at underlying market dynamics. March's data reveal not just differences in market size and liquidity, but also the intriguing role of volatility and institutional interest in shaping these ratios. So, what exactly drives Bitcoin's traders to favor options more aggressively and how does this preference impact the broader crypto market landscape? Discover the factors shaping these strategies and their implications.