Deribit, the largest cryptocurrency options exchange, has launched Bitcoin (BTC) and Ethereum (ETH) options related to the upcoming U.S. presidential election. Cryptocurrency traders consider these options an important tool for managing risk and protecting capital, especially in anticipation of market volatility.
New options targeting election-related volatility
Deribit has announced the launch of options designed to help traders navigate the significant market volatility expected during the U.S. presidential election (November 4). These election expiration options are tied to Bitcoin and Ethereum, the two major cryptocurrencies in the market.
Early Introduction of 8 November US ELECTION Expiry Based on client demand, we have decided to introduce the 8 November 2024 options expiry ahead of the regular introduction timing.The early introduction is aimed at enabling our clients to position themselves effectively… pic.twitter.com/FAkCkROUwr
— Deribit (@DeribitExchange) July 16, 2024
Trader opinion stated: “The U.S. election is a focus for risk assets, including cryptocurrencies, and will have a binary impact on fiscal policy and financial stability. Options are an important tool to hedge against this uncertainty, so Deribit lists this expiration Deadlines are natural."
The potential impact of the U.S. presidential election on cryptocurrencies
Republican candidate Trump has recently expressed support for digital assets. His steady victory due to the shooting incident has also caused Bitcoin to skyrocket.
While Trump has yet to elaborate on his plans for cryptocurrency regulation, his outreach to Bitcoin miners and planned appearance at Bitcoin Summit have garnered support from the industry.
Launch and expiry of Deribit election options
Deribit’s election expiration options will go live on July 18 at 8:00 UTC and expire three days after the election results are announced on November 8. Each Deribit options contract represents one BTC or ETH.
What experts say about new options
“These options are a smart move from Deribit; they will allow traders to position before, during and after the election, with a three-day buffer after the results are announced. It’s a great way to gain leverage and hedge risk at the same time ," said Laurent Kssis, cryptocurrency ETF expert at CEC Capital.
Traditional market strategies can also be applied to cryptocurrencies
In traditional markets, traders use options to manage exposure to binary events, such as elections or corporate earnings reports. CME notes that traders may buy a straddle strategy, which involves buying both put and call options at the same strike price, to profit from significant price movements resulting from such an event.
This article Deribit, the largest crypto options platform: Launching cryptocurrency options for the U.S. election schedule to help with trading and hedging, first appeared on Chain News ABMedia.
