Investors Swiftly Embrace New Bitcoin and Ethereum Derivatives to Speculate on Election Outcomes – DL News
- Deribit introduced fresh Bitcoin and Ethereum options positions with a November 8 expiration date.
- Major investors have committed a substantial $15 million to these trades.
These new options present an opportunity for cryptocurrency traders to speculate on potential price fluctuations of Bitcoin and Ethereum due to the US presidential election outcome.
On a recent Thursday, Deribit, frequented by big-name investors for crypto derivatives, began offering options on the two prominent digital currencies.
These options are slated to expire on November 8, just three days post-election day.
Trading activity has been robust with nearly $15 million moving into these options—around $11 million for Bitcoin options and about $3.4 million for Ethereum, as per the statistics on Deribit’s dashboard.
Luuk Strijers, Deribit’s CEO, anticipates a surge in these options’ popularity in the months leading up to the election.
He remarked to DL News, “It’s highly probable that the next six months’ events will significantly impact cryptocurrencies, particularly Bitcoin as a frontrunner.”
Options betting on Bitcoin to hit the $100,000 mark are in high demand, hinting that traders anticipate a positive market reaction should the election favor the more crypto-friendly candidate, Donald Trump.
Similarly, the most favored options for Ethereum correspond to a potential rally to $3,600.
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Election Bets and Crypto
Strijers pointed out that elections can provoke significant economic shifts.
During this presidential contest, crypto has become an integral aspect of Trump’s platform and a key campaigning subject.
The professional investors’ curiosity in election-linked trading also builds upon the enthusiasm of retail traders who are keen on political wagers, notably on platforms like Polymarket.
As a crypto-based prediction platform, Polymarket lets smaller investors place predictions on outcomes like Biden’s potential resignation, election winners, and Trump’s choice for vice president.
Yet, after considering a foray into prediction markets akin to Polymarket, the Deribit team opted against it, as Strijers sees little demand from their predominantly institutional clientele, labeling prediction markets more of a retail pursuit.
Market Movements in Cryptocurrency
Over the prior day, Bitcoin has dipped by 1.5%, now exchanging hands at $63,893.
Ethereum has witnessed a decrease of 1.6%, currently priced at $3,396.
Reading Material
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Cardano’s Co-Founder Claims Biden’s Victory Could Doom US Crypto Sector — Milk Road
OKX GM Forecasts a Rise in Crypto Mergers and Acquisitions Amid New EU Regulations — DL News
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