Can you give an idea of how big the options market is relative to the spot/futures ETH&BTC markets in comparison with traditional markets? To gauge the size of the effect...
Great question. This is something we're looking into. Preliminiary analysis suggests that 60-100% of Deribit futures activity is related to hedging. This figures fluctuates based on proximity to expiration, size of gamma effect, and size of OI.
Then you can look at the size of Deribit perp volume related to other exchanges. So in the grand scheme of volume, still minor... but growing. We are beginning our research now in order to have a fully developed model when options are mainstream in crypto.
Can you give an idea of how big the options market is relative to the spot/futures ETH&BTC markets in comparison with traditional markets? To gauge the size of the effect...
Great question. This is something we're looking into. Preliminiary analysis suggests that 60-100% of Deribit futures activity is related to hedging. This figures fluctuates based on proximity to expiration, size of gamma effect, and size of OI.
Then you can look at the size of Deribit perp volume related to other exchanges. So in the grand scheme of volume, still minor... but growing. We are beginning our research now in order to have a fully developed model when options are mainstream in crypto.