Derivatives account for the vast majority of crypto trading volumes, but options remain a relatively small corner of the market, dominated by a handful of established venues including Deribit, CME Group and Binance. New entrants are increasingly betting that broader adoption of options will follow the institutionalization of digital assets.
The move is the latest step in Kraken’s transformation from a crypto exchange into a broader financial platform offering trading, payments and other digital asset services.
Growing the market, not just market share
Rather than focusing solely on taking market share from incumbent venues, Theodorou believes the larger opportunity is expanding the addressable market by making options easier to use.
“The existing options market in crypto has been built for a narrow slice of the trader base,” Theodorou said.
“Our offering broadens access through a straightforward, dollar-settled contract in the same account clients already use for spot and futures,” she added.
A retail-first approach
According to Theodorou, the slow growth of crypto options is less a demand problem than a product design problem.
“The gap in crypto options isn’t demand, it’s design,” Theodorou said.
She notes that existing crypto options platforms have largely catered to institutional traders and market makers, while retail traders instead have gravitated toward perpetual futures, which became the industry’s dominant speculative product because of their relative simplicity.