Kraken has launched cash-settled options for Bitcoin (BTC) and Ethereum (ETH), denominated in US dollars, specifically targeting institutional traders. This new offering aims to expand Kraken's presence in the competitive crypto derivatives market, which includes established players like Coinbase and CME Group.
Launch Features and Client Eligibility
Eligible clients can now engage in trading European-style options on Kraken Pro, with contracts available for XBT/USD and ETH/USD. The options come with various expiry periods, including weekly, monthly, quarterly, and semi-annual. Initially, these trades will occur through a request-for-quote (RFQ) process, with a public order book expected to be introduced later.
While specific eligibility criteria have not been disclosed, all contracts are settled in US dollars, which means that profits, losses, and premiums are calculated in USD rather than in the underlying assets. Each eligible client will benefit from portfolio margin automatically, allowing offsetting positions to reduce overall margin requirements.
Comparative Market Landscape
Kraken's entry into the options market comes as Coinbase completed its $2.9 billion acquisition of Deribit, a move that solidified its stake in the institutional crypto options space. Similarly, CME Group has been expanding its offerings by providing CFTC-regulated options for BTC and ETH, including weekend trading since May 2026.
Unlike its competitors, Kraken's structure integrates spot, futures, and options into a single wallet, utilizing a multi-collateral pool that accepts over 30 currencies. This approach is designed to streamline the trading process for clients.
Future Plans
Kraken regards this launch as the beginning of a broader initiative. The current RFQ-only model is anticipated to evolve into a more comprehensive trading environment with enhanced price discovery and geographic access. This progressive rollout aims to incorporate additional assets over time, further solidifying Kraken's position in the market.
This material is for informational purposes only and should not be considered financial advice.
