Deribit to Introduce Bitcoin and Ether Options Expiring After U.S. Elections, Receiving Positive Response from Traders
Deribit is set to list new options for Bitcoin (BTC) and Ether (ETH) that will expire four days after the U.S. presidential elections on November 4. This new offering has been well-received by traders, who see it as a useful tool for managing risk and protecting capital amid the anticipated volatility surrounding the election.
The new options, which are specifically tied to the outcome of the elections, have been praised by market participants. Jeff Anderson, a senior trader at STS Digital, highlighted that the U.S. election represents a significant event for risk assets, including cryptocurrencies. He explained that options are crucial for hedging against the uncertainties that such binary events introduce, making Deribit’s decision to offer these options a logical one.
The upcoming election is particularly significant for cryptocurrencies. Republican candidate Donald Trump has recently shown support for digital assets, diverging from his opponent, incumbent Joe Biden. While Trump has not yet detailed his crypto regulatory plans, his engagement with Bitcoin miners and his upcoming appearance at a Nashville conference have earned him favor within the crypto community. This has positioned BTC and the broader market as potential beneficiaries of his presidency.
Given this backdrop, Bitcoin and Ether are expected to experience heightened price volatility around the election period. As a result, traders are increasingly focused on using derivatives like options to hedge their positions. Options provide a way to manage risk by offering protection against both upward and downward price movements in the underlying assets.
