Kraken expands crypto offerings with new Bitcoin (BTC) and Ether (ETH) contracts Kraken crypto options are now open to a broader set of professional and institutional customers. The company expects that the increasing demand will lead to greater participation in the digital asset derivatives space via Kraken crypto options.
Kraken Pro introduces European-style, cash-settled options in XBT/USD and ETH/USD with the new product launch. Eligible clients can, for starters, enter into contracts using the request for quote (RFQ) model. Traders can also choose from weekly, monthly, quarterly and semi-annual expirations. In a later phase European clients will also have access.
Crypto derivatives have grown rapidly but crypto options are still a small share of total trading activity. Conversely, options are a much bigger part of conventional financial markets. Accordingly, Kraken expects the digital asset options market to continue maturing as institutional participation increases.
The latest offering was launched by the company to cater to the growing demand of professional investors. Strong interest in familiar, dollar-settled options products drove the launch of regulated Bitcoin ETF options in late 2024. As such, Kraken built its platform to offer direct exposure to Bitcoin and Ether through contract structures already familiar to institutional traders.
Professional Trading Aids Dollar-Settled Contracts
All Kraken options contracts are linear and settled in USD. Further, premiums, profits, losses and final settlements are also expressed in USD. This framework provides a simple way to manage the portfolio and allows for trading strategies that are usually used in conventional financial markets.
By default, Kraken also provides portfolio margin to every eligible client. This allows traders to reduce their total margin requirements if they have offsetting positions. In addition, the company provides spot, futures and options products within a unified wallet, enabling customers to manage their assets with a single account.
Clients can also post collateral in over 30 supported currencies. They will also tap into the same multi-collateral pool that already fuels Kraken’s existing derivatives platform. This integrated framework reduces the complexity of managing multiple trading accounts and enhances operational efficiency.
“Crypto options activity is still a fraction of what it is in traditional markets but the gap is closing as professional and institutional capital continues to move into digital assets,” said Alexia Theodorou, Director of Derivatives at Kraken. “The existing options market in crypto has been built for a narrow slice of the trader base. Our offering broadens access through a straightforward, dollar-settled contract in the same account clients already use for spot and futures.”
Kraken Plans Additional Features as Adoption Grows
Kraken described this launch as the first stage of a broader expansion strategy. While the current release supports only RFQ trading, future updates are expected to introduce a public order book. Accordingly, the additional functionality should improve price discovery as trading volumes increase.
The company also plans to expand geographic availability and support additional digital assets over time. These developments aim to strengthen Kraken’s position in the evolving crypto derivatives market while serving a wider professional audience.
Theodorou continued: “Options are central to how sophisticated investors take positions on price, volatility and time. Bringing this capability to Kraken Pro continues the build-out of a comprehensive derivatives platform alongside spot and futures, giving clients a single venue to express directional views and manage risk.”
By expanding access to regulated-style crypto options, Kraken continues to strengthen its derivatives ecosystem. At the same time, the company provides institutional and professional traders with additional tools to manage risk, improve portfolio flexibility, and participate in the growing digital asset economy.
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News Source: Businesswire.com
