Options now represent nearly 50% of total notional open interest across Bitcoin derivatives, about twice their share in earlier periods when they stood near 25%, according to a joint Glassnode and Bybit report titled "The State of Crypto Derivatives." The shift marks a major structural change in crypto markets since institutional participation expanded. Dated futures, once central to derivatives trading, have seen volume fall 97% from their 2021 peak. Perpetual futures (contracts without expiry that use funding rates to track spot prices) have become the preferred instrument for directional exposure, while options have expanded across different market conditions. Options gained market share in four of five market regimes tracked since 2019, with their strongest growth occurring during prolonged bear markets. Bybit now accounts for 28% of Bitcoin options volume across four tracked venues, up from less than 10% when it launched options trading. Its Bitcoin options open interest rose from $529 million to $2.33 billion. The exchange has also led Ether options volume for 143 consecutive days and holds a leading position in tokenized gold perpetuals. The report says the growing role of options is changing market structure by enabling probability-based trading, event-specific positioning and strategies such as collars, risk reversals, calendar spreads and volatility trades. Dealer hedging may reduce spot volatility in normal conditions but amplify price moves around key strike prices and expirations.