Institution Bets $25 Million Hedge on Derive’s Bitcoin Options Amid U.S. Election Frenzy

In a bold move showcasing rising confidence in Bitcoin BTC's post-election performance, an institutionstaked $25 millionon the asset's potential surge.

Using Derive's decentralized on-chain options platform, this trade has set a new record as the largest-ever on-chain options bet.

With Bitcoin's value fluctuating in anticipation of the November 5 election, the institution is likely positioning itself to profit significantly.If BTC hits $80,000 by the end of the month, the institution will make the most of its bet on the asset.

Election-Driven Bitcoin Strategy Targets $80,000 Mark

This high-stakes trading strategy involves a complex series of options positions.

The institution purchased 100 call option contracts with a strike price of $70,000. At the same time, it sold 200 call contracts at $80,000 and 100 put contracts at $50,000.

All these contracts expire on November 29, just weeks after the U.S. election. So, the institution is already set to reap maximum profit if Bitcoin's price reaches $80,000.

To fund this sophisticated options strategy, the institution deposited eBTC, a restaked version of Bitcoin created via EtherFi, as collateral.

This $25 million options trade marks a significant milestone for on-chain options markets," said Nick Forster, co-founder of Derive, in an email statement to an online news site.

The institution has strategically positioned itself with a unique mix of sold puts, purchased calls, and eBTC collateral. If Bitcoin hits $80,000 by the November 29 expiration date, the institution could potentially earn $1,020,000 from the structure. This excludes any additional gains from the eBTC collateral itself."

The Surge in Crypto Market Activity Ahead of the U.S. Election

As the U.S. election nears, both traditional and decentralized markets witness increased trading volumes.In the cryptocurrency space, this has translated into a surge in options trading activity.

Analysts suggest that the election could have long-term impacts on the regulatory landscape for cryptocurrencies. The U.S. could be a key player in shaping global crypto policies.

Meanwhile, this institution's multi-legged trading strategy on Derive is consistent with options flows observed on centralized exchanges, where similar sentiment has driven expectations for a post-election rally.

Many traders believe that Bitcoin could not only reach but surpass the $80,000 mark if market conditions align after the election.

Derive's Role in Onchain Options Growth

Derive, the leading decentralized options platform, continues to dominate the on-chain market, accounting for 32% of the total DEX options volume.According to data from DeFiLlama, Derive processed $339 million in options trading volume over the past 24 hours.

However, while the platform leads the on-chain options space, it remains relatively small compared to major centralized platforms like Deribit, where daily trading volumes regularly reach several billion dollars.

Meanwhile, in a statement, Nick Forster of Derive emphasized the growing importance of on-chain options in the wider crypto ecosystem.

This $25 million trade exemplifies how on-chain options offer scalable, non-correlated yield opportunities for any on-chain asset," he explained.

As institutions continue to explore decentralized markets, Derive is poised to play a crucial role in expanding access to on-chain options trading.

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