Kraken has launched cash-settled bitcoin and ether (ETH) options, positioning the product as the first step in a broader push to grow, rather than simply compete for, the crypto options market.
The exchange on Thursday introduced European-style, USD-settled options on bitcoin and ether through Kraken Pro, initially via request-for-quote (RFQ). The contracts are available to eligible international clients outside of Europe, North America, and Australia, with a European rollout planned for a later date.
Alexia Theodorou, Kraken’s director of derivatives, said the exchange sees crypto options as an underpenetrated segment compared with traditional financial markets, where options account for a much larger share of derivatives trading.
“Crypto options activity is still a fraction of what it is in traditional markets, but the gap is closing as professional and institutional capital continues to move into digital assets,” Theodorou told CoinDesk in an interview.
Kraken’s launch comes as competition in crypto derivatives intensifies, with exchanges and traditional financial firms racing to expand their offerings as institutional demand grows.
Derivatives account for the vast majority of crypto trading volumes, but options remain a relatively small corner of the market, dominated by a handful of established venues including Deribit, CME Group and Binance. New entrants are increasingly betting that broader adoption of options will follow the institutionalization of digital assets.
The move is the latest step in Kraken’s transformation from a crypto exchange into a broader financial platform offering trading, payments and other digital asset services.
