An Institution Bets $25 Million on Derive's Bitcoin Options Market

On Oct. 24, an institution made a $25 million hedge trade on Derive's on-chain bitcoin options market, betting that bitcoin will continue to rise after the Nov. 5 U.S. election. The trade, which involved a long options strategy targeting a rise in the price of bitcoin to $80,000 by Nov. 29, is the largest on-chain options trade related to the U.S. election to date. The institution purchased 100 calls with a strike price of $70,000, while selling 200 $80,000 calls and 100 $50,000 puts, all of which will expire on Nov. 29th. As collateral, they used eBTC, a repledged bitcoin generated through EtherFi, to ensure that passive income would still be available during the position.