Kraken now offers cash-settled Bitcoin and Ethereum (ETH) options. This launch is the first part of a larger plan to expand the crypto options market overall, instead of just trying to gain market share from competitors.
Kraken Pro began offering Bitcoin and Ether options that settle in US dollars, modeled after European-style options, starting Thursday. These contracts are currently available to international clients outside of Europe, North America, and Australia, with plans to expand access to those regions later.
According to Alexia Theodorou, Derivatives Director at Kraken, cryptocurrency options aren’t being used as much as they could be. Compared to traditional finance, where options make up a significant portion of derivative trades, crypto options are relatively underdeveloped.
While crypto options trading is still much smaller than traditional options markets, it’s growing rapidly as more professional investors and institutions begin investing in digital assets, according to Theodorou in a recent CoinDesk interview.
Kraken is entering the cryptocurrency derivatives market at a time when competition is heating up. Both established exchanges and traditional finance companies are quickly adding new products to meet increasing interest from institutions.
While most crypto trading involves derivatives, options trading still makes up a smaller part of the overall market. Currently, just a few platforms like Deribit, CME Group, and Binance handle the majority of these trades. However, more companies are starting to believe that as traditional institutions invest more in digital assets, options trading will become much more popular.
As a crypto investor, I’ve been watching Kraken evolve, and this latest move feels like a big step. They’re not just an exchange where I buy and sell crypto anymore; they’re building a full-fledged financial platform, adding things like payments and a wider range of digital asset services. It’s good to see them expanding beyond just trading.
Growing the market, not just market share
Instead of just trying to steal customers from existing businesses, Theodorou thinks a bigger chance for growth lies in attracting new people to the market by simplifying how these services are used.
Currently, crypto options trading isn’t accessible to most traders, according to Theodorou.
We’re making things easier by letting clients use the same account they already have to settle contracts with U.S. dollars, alongside their existing spot and futures trading.
A retail-first approach
Theodorou believes the reason crypto options aren’t growing quickly isn’t because people don’t want them, but because they aren’t designed well.
“The gap in crypto options isn’t demand, it’s design,” Theodorou said.
Currently, most cryptocurrency options platforms are designed for professional traders and firms that make markets. Because these can be complex, individual investors have generally preferred perpetual futures contracts – a simpler way to speculate on crypto prices – which have become the most popular choice in the industry.
Kraken aims to make trading easier by offering contracts settled directly in US dollars. This eliminates the complexities of using cryptocurrency as collateral or for final payment. Everything – including premiums, profits, losses, and settlements – is handled in USD.
The platform now lets users trade options from the same account they use for regular and futures trading. It automatically uses portfolio margin, which lowers collateral needs by letting users offset positions across different types of trades. Users can also deposit funds in over 30 different currencies.
Theodorou explained that the company has significantly improved its trading platform, adding learning resources to help traders grasp concepts like options (calls and puts) and more complex trading setups.
According to her, options are key for experienced investors looking to profit from or protect against changes in price, market swings, and time. Expanding Kraken Pro with this feature helps create a complete trading platform – covering immediate purchases (spot), future contracts, and now options – allowing customers to manage their investments and risk all in one place.
Europe next
The launch marks the latest phase of Kraken’s options strategy.
We plan to add features in the future like a public order book – which will help users find better prices – as well as expand service to more locations and offer support for a wider range of digital assets.
Kraken’s next big focus is Europe, according to Theodorou, and they’ve already secured the necessary licenses to provide cryptocurrency trading options there.
2026-07-19 16:23