Deribit, the world’s foremost crypto options exchange by open interest, will settle $1.9 billion worth of Bitcoin (BTC) options contracts set to expire today. Indeed, Coindesk reported the 72,000 BTC August options contract, as well as the exchange’s 535,000 ETH options contract worth another $893 million, are set to expire today.
Both Bitcoin and Ether (ETH) saw only moderate gains earlier this week in anticipation of the option expiration. However, the report notes that both were likely to make way for “maximum pain” for August expiry option contract buyers as the expiration approached.
Deribit to Settle $1.9 Billion in Bitcoin Options
The digital asset industry has had a rather inconsistent few days. Moreover, Bitcoin has seen a dip below the $26,000 mark. Specifically, following significant statements regarding the economy from Federal Reserve Chair Jerome Powell. Now, significant option contracts expire today in a notable development.
Specifically, $1.9 billion worth of Bitcoin options are set to expire today. Specifically, Deribit will settle a 72,000 Bitcoin August options contract worth a remarkable amount. Additionally, they will also settle a 535,000 ether options contract with an $893 million value.
Deribit’s Asia Business Development participant, Lin Chen, spoke on the development. “Buyers of BTC and ETH put options are clear winners heading into the expiry,” Chen told the publication. “A lot of put options are in-the-money.”
There remained an expectation that both Bitcoin and Ether could trade closer to their maximum pain levels of $28,000 and $1,800, respectively. Indeed, many writers and sellers of call, or put options often attempt to push the price toward the maximum pain level. Therefore, it impacts counterparties the most negatively.
Regardless, the crypto options exchange is set to settle the 72,000 BTC contract. Subsequently, the $1.9 billion worth of Bitcoin options is officially set to expire at 08:00 UTC today.