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Options trading has revolutionized the crypto derivatives market and improved risk management liquidity. The newly introduced IBIT options have been a great addition to this transformational process and have attracted much institutional interest, while bringing crypto closer to the traditional financial market.
In this article, we’ll examine the current state of the crypto options landscape, what the future might hold in terms of the evolution of new strategies,and how these innovations can improve market efficiency. We’ll also examine how centralized exchanges (CEXs) could converge the crypto and traditional finance (TradFi) markets.
Crypto options trading emerged as a frontier of the cryptocurrency derivatives market. Its roots date back to 2016, when the first BTC options market launched. It can be categorized into three different stages as follows.