Core Insights - BlackRock's iShares Bitcoin Trust ETFs (IBIT) have surpassed Deribit to become the largest venue for Bitcoin options by notional open interest, controlling $38 billion in open interest [1][2][3] - The shift indicates a movement of liquidity from offshore, lightly regulated platforms to regulated products under Wall Street's jurisdiction, reflecting a growing preference for regulated investment vehicles [4] ETF Growth and Market Position - IBIT has quickly established itself as the largest Bitcoin ETF, with total net assets of $90.87 billion and a market capitalization of nearly $89.8 billion [4] - The share price of IBIT rose by 3.15% to $68.84 on October 2, marking a 10.69% increase over the last 90 days [4] - IBIT's open interest in options is reported at $37.9 billion, significantly larger than competitors like Grayscale's Bitcoin Trust and ARK 21Shares [5] Market Dynamics - Since its inception in 2016, Deribit had been the leading venue for Bitcoin options, executing the majority of daily volumes in this niche market [3] - The dominance of IBIT in options trading suggests a potential shift in market dynamics, with implications for crypto-native trading strategies [3][4] - Analyst Eric Balchunas noted that options markets tend to favor a winner-take-all scenario, contrasting with the more distributed nature of ETF assets under management [5]