PANews reported on October 24 that according to CoinDesk, an institution conducted a $25 million hedge transaction in Derive's on-chain Bitcoin options market, betting that Bitcoin will continue to rise after the US election on November 5. The transaction involved a long option strategy, with the goal of Bitcoin price rising to $80,000 by November 29, and is the largest on-chain option transaction related to the US election to date.
The institution bought 100 call options with a strike price of $70,000, and sold 200 call options with a strike price of $80,000 and 100 put options with a strike price of $50,000, all of which will expire on November 29. As collateral, they used eBTC, a re-collateralized Bitcoin generated by EtherFi, to ensure that they can also obtain passive income during the holding period.
Nick Forster, co-founder of Derive, said that this transaction demonstrated the flexibility and scalability of on-chain options trading. If the price of Bitcoin reaches $80,000 on November 29, the strategy may make a profit of $1.02 million. This transaction highlights the development potential of the on-chain options market and also reflects the market's expectation of a rise in Bitcoin prices after the US election. Derive currently accounts for 32% of the total options trading volume on decentralized exchanges, but the size of the on-chain options market is still relatively small compared to centralized platforms such as Deribit.
