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DUBAI - Cryptocurrency derivatives exchange Deribit will introduce new linear options contracts for bitcoin and ether settled in USDC stablecoin on August 19, according to a press release statement issued Friday.
The new offerings will be accompanied by USDC-settled BTC and ETH dated futures, complementing the platform’s existing USDC-settled perpetual futures contracts. The company, a subsidiary of Coinbase (NASDAQ:COIN), cited strong institutional and retail demand as the driving force behind the expansion.
Linear options differ from Deribit’s existing inverse options as they are priced and settled in USDC rather than the underlying cryptocurrencies themselves. The value of these options moves in direct proportion to the price of the underlying asset, providing more predictable exposure to market movements. This development comes as Coinbase shows a notably high beta of 3.71, indicating significant market sensitivity. For deeper insights into crypto market dynamics and company valuations, InvestingPro offers comprehensive analysis tools and real-time metrics across major crypto platforms.
"The introduction of linear options for BTC and ETH marks a significant milestone in our mission to offer institutional-grade products tailored to the evolving needs of our clients," said Deribit CEO Luuk Strijers.
The new products will feature smaller minimum order sizes of 0.01 BTC and 0.1 ETH compared to the exchange’s inverse options, potentially making them more accessible to traders. Deribit’s existing inverse BTC and ETH options, which are priced and settled in their respective cryptocurrencies, will continue to operate alongside the new offerings.
This launch follows Deribit’s introduction of linear options for alternative cryptocurrencies including Solana and XRP last year. The new options will be integrated into the platform’s risk engine and will offset inverse options for margin purposes, potentially improving capital efficiency for traders using both product types.
In other recent news, Coinbase Global Inc. has completed its $2.9 billion acquisition of Deribit, a leading crypto options exchange, enhancing its derivatives offerings. This acquisition is set to contribute significantly to Coinbase’s third-quarter financial results, with Deribit’s transaction revenues from mid-August to September expected to be included. In July, Deribit reported record trading volumes exceeding $185 billion, solidifying its position in the market. Additionally, Barclays has raised its price target for Coinbase to $365, maintaining an Equalweight rating following the acquisition.
Coinbase has also priced $2.6 billion in convertible senior notes in a private offering, increased from an initially planned $2 billion. The offering includes $1.3 billion in 0% Convertible Senior Notes due 2029 and another $1.3 billion due 2032. This move is aimed at bolstering Coinbase’s financial position and providing capital for future endeavors. Meanwhile, Thumzup Media Corporation has raised $50 million to expand its cryptocurrency holdings and mining operations, strengthening its strategic relationship with Coinbase. Thumzup plans to utilize Coinbase Prime as its custodian and prime broker for institutional-grade trading and financing solutions.
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