Over $2.2 Billion in Bitcoin and Ethereum Options Set to Expire as 2026 Begins

Today marks a significant moment in the crypto world with over $2.2 billion in Bitcoin and Ethereum options set to expire, kicking off the 2026 derivatives market.
Both cryptocurrencies are trading near important strike prices, which has traders closely monitoring for potential volatility following the settlement and early indicators for the year.

Key Takeaways

Over $2.2 billion in Bitcoin and Ethereum options are expiring, indicating strong market interest.
Bitcoin options dominate with approximately $1.87 billion in notional value, while Ethereum has about $395.7 million.
The trading data suggests a bullish sentiment, with more call options than puts for both cryptocurrencies.
The results of this settlement may influence market activity and price fluctuations in the coming days and weeks.

Bitcoin and Ethereum Options Settlement: A Look at the Numbers

Bitcoin leads the charge, with around $1.87 billion in contracts. At settlement, Bitcoin is priced at about $88,972, slightly above the "max pain" level of $88,000—where the most options expire worthless. Current open interest reveals 14,194 call contracts and 6,806 put contracts, resulting in total open interest of 21,001 and a put-to-call ratio of 0.48. This indicates a market currently leaning towards bullish expectations, with traders aiming for price increases rather than downside protection.
Bitcoin Expiring Options

Turning to Ethereum, its options total about $395.7 million in notional value, with prices hovering around $3,023, just above its max pain level of $2,950. Open interest is also significant, showing 80,957 calls compared to 49,998 puts, leading to a total open interest of 130,955 and a put-to-call ratio of 0.62.
Ethereum Expiring Options

Although Ethereum's positioning is less aggressive than Bitcoin's, it still demonstrates a degree of cautious optimism.

The Importance of the First Major Options Settlement in 2026

The significance of this settlement cannot be overstated. As the first major derivatives event of 2026, it has the potential to dictate market trends for the upcoming quarter. Past experiences show that such settlements often lead to increased volatility, especially when the prices of assets diverge notably from max pain levels.

The current positioning data supports a bullish outlook. In Bitcoin block trades, which are frequently executed by institutional traders, calls represented 36.4% of the trades, as opposed to just 24.9% for puts. Interestingly, Ethereum's block trade activity is even more skewed, with calls accounting for an impressive 73.7% of the volume.

These trends indicate that market participants are looking beyond short-term gains and positioning themselves for long-term price improvements. This bullish sentiment is visible in Bitcoin options, where trading interest is predominantly in contracts that expire later in 2026—especially in March and June. Meanwhile, Ethereum reflects consistent interest across all quarterly options throughout the year.

However, as expiration day arrives, risk is also introduced. The unfolding of hedged positions can lead to a drop in price stability, particularly if market prices stray from critical strike points. The prevailing bullish sentiment creates a scenario where a failure to achieve upward movement might result in many calls expiring worthless. Conversely, a sustained price increase could instigate strong market momentum.

As traders adjust their positions and reconsider their exposure, the outcomes from this settlement will be crucial in determining the volatility landscape for Bitcoin and Ethereum, especially as we approach the weekend. The question now is, will this bullish enthusiasm lead to lasting gains, or will it face challenges as various pressures from derivatives ease?