Crypto Derivatives Exchange Deribit Introduces Election-Themed Options
Deribit, a major cryptocurrency derivatives exchange, is getting ready for the upcoming US elections by introducing new bitcoin and ether options expiring on November 8, 2024. These options will be available starting July 18, 2024, at 8 AM UTC.
Deribit’s decision to offer these new options was driven by client demand. The company believes that these options will allow traders to position themselves strategically for the election, giving them the ability to speculate, hedge, and more.
Deribit has become a leader in the crypto derivatives market, boasting over $3 billion in total assets. In April 2024, the exchange accounted for 70% of the total $51.1 billion bitcoin options trading volume.
Political Finance
This move by Deribit fits into a broader trend of blockchain-based betting solutions focusing on political outcomes. The rise of “PoliFi” (political finance) tokens and prediction markets like Polymarket (https://www.polymarket.com/) has made it possible for global participants to bet on US election results.
Crypto and Elections
The crypto community has been keenly watching political attitudes towards digital assets. Donald Trump’s recent shift towards a more positive stance on cryptocurrencies, after previously expressing skepticism, has sparked industry discussions. Trump is scheduled to speak at the Bitcoin 2024 convention in Nashville on July 27.
Deribit’s new election-themed options provide traders with another tool to express their views on potential regulatory changes and political outcomes. However, as with all cryptocurrency derivatives, these products carry significant risks and could contribute to increased market volatility around political events.
