Deribit, the world’s largest crypto options exchange, has begun preparations for Bitcoin’s (BTC) fourth mining reward halving, a programmed code that reduces the pace of supply expansion by 50% every four years, due in April next year. The Panama-based exchange has decided to list the June 2024 expiry futures and options on Thursday at 08:00 UTC, preponing the launch by a week to cater to user demand. “Normally, Deribit would introduce the June 2024 options and futures next week at the June 2023 quarterly expiry. However, with the halving expected in April, clients have requested us to list them earlier to facilitate the trading of these contracts ahead of the regular listing date,” said Deribit’s Chief Commercial Officer Luuk Strijers.
Futures and options are financial derivative contracts that allow investors to hedge against future market volatility and reduce portfolio risk exposure. Bitcoin’s impending halving will reduce the per-block reward paid to miners to 3.125 BTC from 6.25 BTC. Historically, bitcoin has rallied in the months leading up to the supply-altering event and seen price pullbacks following the event. If history is a guide, there could be plenty of directional volatility in the next 12 months – more so as the U.S. Securities and Exchange Commission is expected to decide on BlackRock’s spot-based BTC ETF application early next year.