The open interest in Bitcoin options has almost reached $6 billion.

In the middle of an ongoing bullish Bitcoin race (BTC), Bitcoin Options are reaching a new historical milestone. Bitcoin options are derivative contracts that give the holder the right, but not the obligation, to buy or sell BTC at a predetermined price.

According to Skew’s data, Bitcoin option volumes crossed the $1 billion mark on December 16. Skew announced the news on Thursday on Twitter, noting that Bitcoin options saw their „first day of $1 billion.

Deribit, a major global option and futures exchange, had the highest volume of BTC options on the day at $879 million. The exchange has become the most popular BTC options exchange, historically dominating the Bitcoin options market., the crypto-currency derivatives exchange owned by the Bitmain-backed financial services platform Matrixport, had the second largest volume of BTC options on the day. According to Skew, the maximum volume of Bitcoin options on was about $84 million.

The major global OKEx crypt exchange is the third largest BTC option platform on the list, with a maximum option volume of $62 million on December 16.

The Bitcoin options market has experienced parabolic growth in 2020, as even weekly volume didn’t reach the $200 million mark at the beginning of the year.

The volume growth comes along with a massive increase in open interest in Bitcoin options, or OI, which represents the total number of contracts outstanding in the market and not yet settled. According to Skew’s data, the OI of Bitcoin options nearly hit a threshold of $6 billion on December 16, compared to about $600 million in early January.

The OI for Bitcoin options has risen steadily throughout 2020. As previously reported by Cointelegraph, the high OI rates are related to the increasing liquidity of the options, as well as the growing number of market participants. Peaks in the OI of Bitcoin options can also be fueled by larger macroeconomic events such as decentralized financial hype and the long-term effects of Bitcoin halving on the markets. Options are a derivative tool with several possible uses, including insuring existing positions against possible falls or price speculation with an asymmetric risk-return profile.

The new record volumes in the Bitcoin options market occur in the midst of the Bitcoin price reaching its new historical peaks. On December 16, Bitcoin set a new record by breaking the $20,000 threshold for the first time since 2017. The largest crypt currency continued to gain momentum, rising briefly to USD 23,500 on December 17.