Major Expirations of Crypto Options in August 2025: What Investors Can Expect

In August, the cryptocurrency market will face a new wave of significant derivative expirations. A substantial volume of options on Bitcoin (BTC) and Ethereum (ETH) will expire on leading exchanges. Investors from the CIS are closely monitoring these events, considering the potential impact of expirations on price volatility. Below, we will examine the primary platforms, the scale of the upcoming expirations, and their significance for the cryptocurrency asset market.

Key Dates and Scope of August Expirations

The key event will be the monthly expirations of derivatives at the very end of August. **The last Friday of the month (this year on August 29)** traditionally serves as the settlement day for monthly contracts:

• Deribit (BTC and ETH options): On the morning of August 29 (08:00 UTC), the largest volume of crypto options will expire. It is estimated that more than $10 billion in total notional contracts will mature on this date.
• CME (futures and options): On the same day, the trading cycle for August futures and options on BTC and ETH will conclude at the Chicago Mercantile Exchange. Expirations at CME occur in the afternoon London time and serve as an indicator of institutional investor interest.
• Other exchanges (OKX, Binance, etc.): Concurrent expirations will occur on other platforms, although their volumes are significantly lower than the leaders. The combined contribution of these exchanges to the August expirations is estimated to be in the billions of dollars.

In addition to the primary monthly day, weekly expirations of options will take place every Friday in August. However, their scale is significantly smaller: the main interest of participants focuses on the final August date.

Deribit — The Dominant Options Platform

The lion's share of crypto options is set to expire on Deribit, which remains the undisputed leader in the industry. It accounts for approximately 85% of the global trading volume of cryptocurrency options. The August expiration will be no exception: according to Deribit, thousands of contracts tied to BTC and ETH will expire at the end of the month. Preliminary estimates indicate that there is an open interest of around $10 billion in BTC options and a few billion more in ETH options.

Traders are particularly focused on price levels where the maximum interest in options positions is concentrated. For Bitcoin, this zone of maximum interest (analogous to the "max pain" concept) in August is around the $100,000 mark for BTC. This is where the largest number of open contracts — both call and put options — are concentrated. In the case of Ethereum, the key strike is located around $2,500 for ETH. The proximity of market prices to these zones indicates that a significant number of options may expire out of the money, benefiting option sellers.

The Ethereum Market and Options on Other Cryptocurrencies

Although Bitcoin options dominate in volume, the expiration of options on Ethereum is also of substantial significance. The total notional value of expiring ETH options in August is estimated to be in the billions of dollars. Open interest is distributed across strike prices, with the most significant one, as noted earlier, being around $2,500 for ETH. Investors note that the put-call ratio for Ethereum reflects a moderately positive sentiment, with the number of open calls slightly exceeding the number of puts, indicating expectations of growth, albeit without excessive euphoria.

Beyond the flagship cryptocurrencies, options on altcoins are gradually gaining popularity in the market. Deribit launched trading in options on Solana (SOL), Ripple (XRP), and Polygon (MATIC) this year. The expirations for these contracts will also occur at the end of the month. However, trading volumes in altcoin options remain incomparably small compared to BTC and ETH. Their influence on the overall market is limited, with price movements in the primary assets setting the tone for the entire derivatives sector.

The Role of Traditional Exchanges: CME and Institutional Interest

August expirations are taking place not only on crypto-native platforms but also on traditional exchanges. A particular focus is on the CME Group — the largest derivatives platform that offers futures and options on Bitcoin and Ethereum. The expiration of August contracts at CME attracts the attention of large investors, as it provides signals about the sentiment of institutional participants. Analysts estimate that CME's share of the crypto options market currently stands at about 10%, which is notable for a segment that has long been monopolized by offshore crypto exchanges.

The growth of volumes at CME indicates an expansion of participation by traditional funds and financial institutions in the crypto market. In August, it is expected that the daily turnover of Bitcoin futures and options at CME will remain close to record levels, reflecting high interest in hedging and speculation on a regulated platform. Since CME conducts expirations under strict supervision and clearing, its data is widely used by investors as a benchmark for evaluating the overall balance of supply and demand for cryptocurrencies.

Volatility Around Expirations and the “Max Pain” Effect

Significant expirations traditionally accompany surges in trading activity and can influence short-term price volatility. In the lead-up to the August expirations, volatility indicators remain relatively subdued. According to Deribit, the implied volatility index DVOL for BTC is currently at low levels, around multi-month lows. This indicates that most market participants do not anticipate sharp price jumps purely due to the expirations.

However, the day of expiration itself may bring about local price movements. Market makers' and large option sellers' trading strategies often include last-minute position balancing. If the market price of BTC or ETH significantly deviates from the designated interest zones, efforts may be made to pull it closer to the "pain-free" level. Such a "max pain" effect has been observed before: prices often tend to gravitate towards strikes with maximum open interest, as this is where the largest number of options become worthless at expiration. Nevertheless, this effect is not guaranteed — external factors can also influence prices.

Market Participants' Tactics Ahead of Expiration

Major investors and traders typically prepare in advance for expiration weeks by managing risks and restructuring their derivatives portfolios:

• Position Rollovers: Many option holders prefer to roll over their positions to longer-dated contracts to avoid execution. In August, an increase in open interest for September and December series is expected as the expiration date of the current month approaches.
• Volatility Hedging: To neutralize potential price spikes, market participants utilize futures and spot trades. For instance, large sellers of call options might sell an equivalent amount of BTC in the spot market or open short positions in futures to lock in the price and minimize losses if the asset appreciates.
• Risk Management for Retail Investors: Private traders are advised by experts to exercise caution during expiration periods. Increased volatility on settlement day can lead to sharp, short-term price movements. Setting stop-loss orders and avoiding excessive leverage can help protect capital from adverse fluctuations.

Outlook After August Expirations

The completion of the August derivatives cycle will mark an important milestone for the crypto market in the third quarter. A relatively smooth passing of expirations would enhance confidence in the market, signaling sufficient liquidity to absorb large settlements without dramatic price shifts. Soon, investors' attention will shift to the next major event — particularly the September quarterly expiration, which traditionally has an even larger scale of open interest.

Long-term market participants note that the impact of one-time expirations is short-lived. Fundamental drivers — such as macroeconomic policy, cryptocurrency regulation, and the pace of institutional adoption — continue to dictate the overall price trend. However, the increased volumes of derivatives indicate the maturation of the cryptocurrency market. Options and futures are transforming from niche instruments into a significant pricing factor. Consequently, savvy investors must pay attention to the expiration calendar: understanding the dynamics of derivatives aids in better navigating market conditions and making informed decisions.