The cryptocurrency market witnessed a massive options expiry event on May 24, 2024, with approximately $2.7 billion in Bitcoin and Ether options set to expire, providing critical insight into current market sentiment amid a historic week for Ethereum following the SEC’s surprise approval of spot Ether ETFs.
TL;DR
- $2.7 billion in combined BTC and ETH options expired on May 24
- 21,000 Bitcoin options expired with a put/call ratio of 0.88 and max pain at $67,000
- 350,000 Ether options expired with a notional value of $1.3 billion
- ETH surged over 20% in a single day following the SEC’s spot ETF approval on May 23
- An even larger $4.3 billion options expiry looms on May 31
Bitcoin Options Data Reveals Bullish Bias
According to data from Greeks.live, 21,000 Bitcoin options expired on May 24 with a put/call ratio of 0.88, indicating a near-even balance between buyers and sellers with a slight tilt toward call options. The maximum pain point — the price at which most option buyers would incur losses — stood at $67,000, representing a nominal value of $1.4 billion.
Bitcoin was trading around $69,266 on May 25, according to CoinMarketCap data, well above the max pain level. This suggests that many put option holders found themselves out of the money, while call option sellers faced pressure to deliver at lower strike prices.
Deribit data revealed that long positions dominate open interest, with $830 million tied to the $70,000 strike price and a remarkable $843 million in open interest at the $100,000 mark. This substantial OI at higher strikes indicates strong bullish conviction among derivatives traders, with many betting on significantly higher Bitcoin prices in the months ahead.
Ethereum Options Reflect Post-ETF Surge
The options expiry event also included 350,000 Ether contracts, representing a notional value of $1.3 billion. With a put/call ratio of 0.58 and a max pain point of $3,200, the data pointed to a decidedly bullish tone among ETH traders. Ethereum was trading near $3,749 on May 25, well above the max pain level.
The Ethereum options market had experienced extraordinary volatility in the days leading up to the expiry. Following the SEC’s approval of Form 19b-4 filings for eight spot Ether ETFs on May 23, Ethereum led a crypto rally with a stunning one-day 20% surge. Short-term implied volatility for Ethereum options spiked to 150% at one point, significantly higher than Bitcoin’s IV for the same period.
However, analysts noted that sustaining such extreme IV levels for each major term is challenging due to overall market structure. This divergence between Bitcoin and Ethereum’s derivatives markets suggested that calendar spread strategies might offer better risk-adjusted returns for options traders looking to capitalize on the volatility gap.
Spot Ether ETF Approval Changes the Game
The May 23 decision by the SEC to approve rule changes permitting the listing and trading of eight separate Ether ETFs represented a watershed moment for the cryptocurrency industry. The approval came just months after spot Bitcoin ETFs began trading in the United States in January 2024.
However, the approval of the 19b-4 forms does not mean these ETFs will be immediately available to investors. The registration statements for each ETF remain under SEC review through a separate process, and the timing of final approval remains unclear. Notably, each ETF’s registration statement was amended to preclude any staking of ether held by the fund — a significant limitation given that staking yields are a key feature of the Ethereum ecosystem.
All Eyes on the $4.3 Billion May 31 Expiry
While the May 24 expiry was substantial, it pales in comparison to the event looming on May 31. According to Deribit data, $4.3 billion worth of options are set to expire at the end of the month, making it one of the largest expiry events in recent history. Traders and analysts will be watching closely to see how the market absorbs this massive settlement, particularly given the elevated volatility environment created by the Ether ETF approval.
Why This Matters
The convergence of a historic ETF approval, massive options expiries, and bullish institutional price targets creates a uniquely volatile environment for the cryptocurrency market. Standard Chartered’s head of crypto research, Geoff Kendrick, set an $8,000 year-end target for Ethereum, based on his Bitcoin target of $150,000. Cathie Wood of Ark Invest echoed similar bullish projections. The options market data — with hundreds of millions in open interest at far above current prices — reinforces that sophisticated traders are positioning for continued upside. For DeFi participants and Ethereum stakeholders, the ETF approval represents the beginning of a new chapter of institutional access, even if the actual launch of these funds is still weeks or months away.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments carry significant risk. Always do your own research before making investment decisions.
843M in OI at the 100k strike tells you everything. these traders are either genius or completely insane, no in between
ETH implied vol spiking to 150% while BTC sat there calmly was wild. the calendar spread trade mentioned here actually makes a lot of sense if you got the timing right
^ the spread was juicy but you had to size it tiny. 150% IV means one bad day and your spread becomes a donation
4.3 billion on May 31 and people are still sleeping on it. that expiry is gonna make the $2.7B one look like a warmup