Dated offshore Bitcoin futures down 97% as traders migrate

Offshore dated Bitcoin futures volume across crypto-native exchanges has dropped about 97% from 2021 levels, Glassnode data show. The decline unfolded over the past five years as traders shifted how they manage leveraged and expiry-specific risk.

Traders moved leverage into perpetual futures, contracts without a fixed expiry that use recurring funding payments to track the spot price. Perpetuals remove the need to roll positions into a new maturity and concentrate liquidity for continuous directional exposure. Options gained market share as tools for hedging, downside protection and volatility trading.

A Sept. 18 snapshot on Binance showed the BTCUSDT perpetual with about 108,289 BTC of open interest and the BTCUSDC perpetual with about 19,465 BTC, equivalent to roughly $9.93 billion at mark prices. Binance’s two USD‑margined dated contracts expiring Sept. 25 and Dec. 25 held about $77 million combined, making perpetual open interest about 129 times larger than those quarterly contracts in that snapshot.

Glassnode’s analysis finds options expanded from roughly one-quarter of crypto-native Bitcoin derivatives open interest to nearly half, gaining share in four of the five market regimes studied since 2019. Options are used by holders who seek protection without selling spot Bitcoin, by sellers who generate income by writing calls, and by traders who want to trade volatility without taking a directional futures position.

Dealers who trade options hedge dynamically, which links option flows to spot and perpetual liquidity. The market has also moved away from coin-backed margin toward stablecoin or cash-like collateral, reducing the risk that collateral falls in value at the same time as a leveraged position.

Research conducted with a major exchange found one platform’s options book expanded from about $529 million in its first month to $2.33 billion, and its share of tracked options volume rose above 28%. Those exchange-specific figures come from work done with the platform.

Dated futures continue to operate on regulated venues such as the Chicago Mercantile Exchange, where standardized contracts, clearing and established compliance attract institutional users. Institutions and funds can use regulated futures against spot holdings or ETFs, and basis traders and market makers use those contracts for hedging and inventory management.

Glassnode’s multi-cycle data show the derivatives market has split roles: perpetuals carry most continuous directional leverage, options cover volatility and expiry-specific risk management, and regulated futures provide standardized clearing for institutional participants.