Bitcoin lacks native yield, but major market participants are increasingly turning to options as the primary tool to generate returns. Institutions, treasury companies, miners, whales, and crypto-native desks are actively seeking ways to earn on top of BTC, says David Lawant, Head of Research at Anchorage Digital.
The catalyst is the rise of spot Bitcoin ETFs, which have created a new class of large-scale holders. These entities need mechanisms to generate income without selling their core positions, making options strategies — such as covered calls — an attractive solution. The trend reflects a broader maturation of the crypto derivatives market.
The shift is accelerating as more traditional financial players enter the space. Options trading volumes on Bitcoin derivatives exchanges have surged, signaling that the 'yield problem' is being solved through sophisticated financial engineering rather than native staking or lending.
Counter_argument: Critics warn that options strategies can amplify downside risk in a downturn, and the complexity may introduce systemic vulnerabilities in an already volatile market. Lawant acknowledges that the approach requires careful risk management, particularly for less experienced participants.