Institution Takes $25M Hedge Bet on Derive’s Bitcoin Options Market as U.S. Election Looms

In a significant move ahead of the U.S. election, an institution recently made a $25 million hedge bet on Derive’s Bitcoin options market. This multi-legged strategy generated substantial volume and is expected to yield the most profit if Bitcoin reaches $80,000 by the end of November. As the election draws near, increased betting and hedging related to the political event have driven notable increases in trading volumes within the crypto market. The outcome of the election will have far-reaching consequences for crypto regulations in the largest economy globally. This trade on Derive, a decentralized derivatives exchange, marked the largest-ever onchain options transaction tied to the U.S. election, with a notional trading volume of $25 million. The institution strategically acquired call option contracts and wrote or sold put contracts, while collateralizing with eBTC to earn passive yields. The trade’s structure and positioning align with expectations for a post-election Bitcoin rally to $80,000 or higher. This landmark trade showcases the scalability and non-correlated yield that onchain options offer for any onchain asset. While Derive is the largest onchain options platform, accounting for a significant portion of DEX options volume, the overall onchain market remains relatively small compared to centralized platforms like Deribit.