The option/futures OI ratio represents the percentage of open interest in an option contract compared to a futures contract. A high ratio indicates that there is a greater emphasis on options trading than futures trading.
Bitcoin's option/futures open giveaway (OI) ratio consistently outperforms Ethereum, raising questions about the underlying driver. Coinglass data shows that Bitcoin ratio has risen from 57.80% to 69.60% since the beginning of March, while Ethereum ratio has risen slowly from 26.9% to 32.98%.
This gap suggests that Bitcoin ratio is about twice as high as Ethereum, which is daily, prefers options over futures for Bitcoin traders. To understand why, we can examine the OI and price performance of both assets over this period, along with broader market trends.
First, the scale of the optional activity provides context. Bitcoin options are up 24%, up from $280.9 billion on March 2 to $348.2 billion on March 6.
Ethereum options are up 27% from $51 billion to $6.47 billion, but are definitely 5-6 times less. This disparity reflects Bitcoin's larger market capitalization, historically 3-5 times higher than Ethereum's market capitalization, attracting more trading volumes and liquidity. Increased liquidity attracts both institutional traders and retailers to Bitcoin options, often used to hedge and leverage price movements in more established markets. Authorized participants in the Spot Bitcoin ETF will use both futures and options to generate revenue while minimizing the risk of promoting a basket of Bitcoin to meet the ETF inventory.
Price performance in March further emphasizes divergence. Bitcoin prices rose from $84,413 on March 1 to $90,624 on March 6, with volatility at a peak of $94,238 on March 3 and down to $86,212 on March 4. From $2,145 to $2,145 on March 3rd. Bitcoin's stronger net profit and higher volatility are likely to use options to exploit or hedge these fluctuations, which coincides with the rising option/futures ratio.
Ethereum's more modest price movement and absolute price declines may reduce the perceived need for options-based strategies and keep the ratios low despite stable options for growth.
Market size and liquidity play a key role in the higher ratio of Bitcoin. In larger markets, Bitcoin naturally sees more absolute trading activities and supports a robust options market. With higher liquidity, Bitcoin is a preferred option for traders looking to manage risk, primarily through options that offer more flexibility than futures. Due to the small market, Ethereum believes it relies heavily on futures for directional speculation, reflecting its less developed derivatives ecosystem.
Hedging demand also contributes to the gap. With swings such as an 11.7% rise and an 8.5% drop, Bitcoin's price volatility encourages traders to support risk management options, especially given the dominant role of Bitcoin in the crypto space. This is evident in the growth tracking price recovery options from March 4th. Ethereum's volatility, including a 14.9% drop, is noteworthy, but due to its low price, it is not much affected under absolute conditions.
Institutional participation further widens gaps. Bitcoin has seen more institutional adoption, particularly since the approval of the Spot Bitcoin ETF in 2024, bolstering the derivatives market. Institutions often prefer options for capital efficiency and flexibility, increasing the options/futures OI ratio for Bitcoin. Ethereum has benefited from spot ETH ETF trading since mid-2024, but is behind.
The performance of Ethereum ETFs has declined, indicating a lower investor confidence compared to Bitcoin ETFs, with returns ranging from -1.78% to -36.48% since the start of the year. $376.60 million.
This inperformance of Ethereum ETFs could hinder the adoption of the scheme as institutions prioritize assets with stronger market validation and liquidity. The reduction in agency's interest in Ethereum ETF limits the growth of the options market as the agency is a key factor in hedging and speculation option activities. As a result, Ethereum's option/futures OI ratio remains low, reflecting the less mature derivatives market compared to Bitcoin.
Finally, market maturity gives Bitcoin an advantage. Bitcoin has a longer history and a more developed option market. Traders see Bitcoin options as a reliable tool for speculation or risk management, but they believe that Ethereum options market is still mature and therefore have less activity compared to futures.
Data for March 2025 supports this, with greater support from institutions driving Bitcoin's stronger price performance, a larger option market, and higher options/futures OI ratios. Despite the growing OI options, Ethereum remains small in the market and constrained by weak adoption of the scheme, lowering its ratio and highlighting the dominance of Bitcoin in the crypto derivatives market.
Post-traders disproportionately favor options over Bitcoin futures compared to Ethereum, which first appeared on Crypto Slate.
