Kraken has launched cash-settled options contracts on Bitcoin and Ethereum, allowing traders to trade without holding any crypto. The new European-style options on XBT/USD and ETH/USD will settle entirely in US dollars, eliminating the need for Bitcoin collateral. The contracts will initially be available through a request-for-quote system on Kraken Pro, targeting professional and institutional clients outside Europe, North America, and Australia.
Key Features
The product lineup covers weekly, monthly, quarterly, and semi-annual expiration cycles, with portfolio margins enabled by default. Clients will also benefit from a unified wallet that supports collateral in over 30 currencies, tying together options, spot, and futures trading into a single interface.
Market Impact
Kraken’s move aims to unlock institutional demand that existing crypto derivatives haven’t reached, according to Alexia Theodorou, who works on the product at Kraken. The exchange plans to expand access to European clients later in 2026, with a public order book also expected to follow. Kraken’s entry into the market follows similar offerings from CME Group, Deribit, and Binance, but with a unique focus on cash-settled, dollar-denominated options.
Competitive Landscape
The RFQ model at launch prioritizes execution quality and discretion over transparency, catering to large institutional players. If Kraken can successfully open access to North American and European clients, it would significantly broaden the addressable market, with the shift from RFQ to a public order book being a key milestone for retail and smaller institutional players.
Based on reporting from cryptobriefing.com.