Deribit already holds 96.6% of Coinbase’s derivatives open interest ahead of Sept. 9 migration

Summary

Deribit currently controls 96.6% of Coinbase’s derivatives open interest, as measured in a Sept. 1 snapshot, ahead of a Sept. 9 migration that shifts a smaller International Exchange (ICE) derivatives book to Deribit. This indicates Deribit’s dominant position in crypto derivatives, which may influence market liquidity and pricing dynamics for Coinbase-related derivatives.

Market Context

This event may affect Coinbase (COIN) by reducing its derivatives market share and liquidity, potentially impacting trading volumes and revenue from derivatives products. Deribit’s dominance could also influence price discovery and volatility in crypto derivatives markets, indirectly affecting COIN’s valuation.

Key Drivers

• Deribit holds 96.6% of Coinbase’s derivatives open interest as of Sept. 1
• Sept. 9 migration shifts a smaller ICE derivatives book to Deribit
• Deribit’s dominant position in crypto derivatives may impact market liquidity and pricing

Risks

• The article does not provide data on Coinbase’s derivatives revenue or user adoption impact
• The migration’s effect on Coinbase’s derivatives market share is not quantified beyond the open interest shift

Time Horizon

Short Term