Kraken Launches Bitcoin and Ether Options on Pro

Kraken Launches Crypto Options on 16 July 2026

Cryptocurrency trading platform Kraken announced on 16 July 2026 that it had launched European-style options based on Bitcoin and Ether through Kraken Pro, further expanding its range of digital asset derivatives. The initial contracts are cash-settled in US dollars, primarily target eligible professional and institutional clients, and are offered through a request-for-quote trading model.

The newly launched contracts coverBTCandETH, including Bitcoin-to-US-dollar and Ether-to-US-dollar options. European-style options can be settled only on the expiry date, meaning holders cannot exercise them early. Traders wishing to exit a position before expiry must close it through an offsetting trade.

(Source: Kraken,Kraken bringing crypto options to a wider audience as the market scales, published 16 July 2026, sections “Contract details and access” and “Linear, USD-settled contracts with default portfolio margin”.)

Initial Phase Uses RFQ Trading and Offers Multiple Expiries

Kraken’s newly launched options are not yet traded through a public order book available to all users. Instead, they operate through aRFQmodel. Eligible clients first select the underlying asset, call or put direction, strike price and expiry date before submitting a quote request to market makers and choosing an execution price from the quotes returned.

Kraken’s official product page indicates that geographic eligibility is restricted during the initial phase. The product is currently unavailable to residents of the United States, the European Union and certain restricted jurisdictions. Clients in other regions must also complete an eligibility assessment when enabling the product on their accounts. In the United Kingdom, access is limited to users formally classified as professional clients or eligible counterparties.

• Kraken has not yet published a complete list covering every eligible country and territory.

• Account location, client classification and applicable regulatory requirements affect product eligibility.

• Access in the European market is planned for the second half of 2026, subject to regulatory confirmation.

• Both web and mobile access are supported during the initial phase, with additional underlying assets and expiry dates also planned.

US Dollar Settlement and a Unified Wallet Reduce Operational Complexity

Kraken has structured the new products as linear contracts settled in US dollars, with premiums, position profit and loss, and final settlement amounts all denominated inUSD. At settlement, clients do not receive physical delivery of Bitcoin or Ether. Instead, the corresponding US dollar difference is calculated using the expiry reference price.

Bitcoin and Ether options use their respective options reference rates as the basis for settlement. Kraken states that the settlement price is calculated using the average price during the 30 minutes preceding 08:00 on the expiry date, based onUTC. Contracts settle automatically upon expiry, and clients are not required to submit separate exercise instructions.

(Source: Kraken, Kraken Options product information, accessed 20 July 2026, sections “How settlement works”, “Portfolio margin is on by default” and “One wallet across Futures and Options”.)

Portfolio Margin Enabled by Default

Kraken enables portfolio margin by default for eligible options clients rather than requiring a separate application. The system calculates margin based on the overall net risk of spot, futures and options positions, providing a degree of margin offset for positions that move in opposite directions or hedge one another.

The principal account and collateral arrangements include:

• Spot, futures and options positions can be managed through the same unified wallet, reducing the need to transfer funds frequently between separate accounts.

• Clients may use more than 30 eligible currencies or digital assets as collateral, including Bitcoin, Ether and selected stablecoins.

• Different collateral assets are subject to haircuts reflecting their volatility risk and are not necessarily credited at 100% of their market value for margin purposes.

• When purchasing options, the full premium is not immediately deducted as it is on some platforms. Instead, position profit and loss are calculated continuously under a futures-style margin mechanism.

• A taker fee applies at expiry settlement. Kraken states that this fee is capped at 12.5% of the option’s mark price for each contract.

“The existing crypto options market serves only a small proportion of the trading community.”

Kraken states that the unified wallet and US dollar settlement structure are intended to reduce the operational burden of managing separate collateral pools, digital asset delivery and multiple trading terminals. However, portfolio margin does not eliminate risk. When several correlated assets experience substantial price movements at the same time, an account’s net risk and additional margin requirements may still change rapidly.

Kraken Continues to Expand Its Digital Asset Derivatives Business

The product launch forms part of Kraken’s broader expansion in derivatives. The platform already offered spot, margin, futures and perpetual contract trading. With the addition of crypto options, professional clients can manage directional positions, volatility exposure and expiry risk within the same trading environment.

Kraken stated in its announcement that crypto options trading volumes remain below those of futures and perpetual contracts, as well as below the level of options usage in traditional derivatives markets. The company believes that, as professional and institutional capital continues to enter the digital asset market, adopting a US dollar settlement structure familiar to traditional finance clients may broaden participation in crypto options.

(Source: Kraken,Kraken bringing crypto options to a wider audience as the market scales, published 16 July 2026, sections “Meeting demand for a familiar, dollar-settled structure” and “What’s ahead for Kraken’s options offering”.)

Public Order Book and European Access Included in Future Plans

Kraken describes the 16 July 2026 launch as the first phase of its options business. The RFQ model is suitable for larger transactions, more complex structures or trades requiring the simultaneous execution of multiple legs. A public order book, however, generally makes it easier for market participants to monitor bid and offer prices, available depth and price movements continuously.

According to Kraken’s published product roadmap, future expansion will focus on the following areas:

1. Adding a public order book alongside the existing RFQ model to improve continuous quoting and price discovery.

2. Opening access to eligible clients in Europe during the second half of 2026, subject to regulatory confirmation.

3. Adding further digital asset underlyings beyond Bitcoin and Ether.

4. Introducing additional expiry dates, including daily options mentioned on the official product page.

5. Continuing to enhance multi-leg trading, volatility trading and cross-product margin management features.

Based on the conditions currently published, Kraken Options remains an early-stage product focused primarily on professional and institutional clients rather than a service already available to retail users worldwide. Its ability to broaden participation in the crypto options market will depend on the development of a public order book, market-making liquidity, geographic licensing coverage and the pace at which additional assets are introduced.

Questions About Kraken Crypto Options