Kraken launches dollar-denominated BTC and ETH options on Kraken Pro

Kraken launches dollar-settled BTC and ETH options on Kraken Pro

Kraken has launched dollar-settled Bitcoin and Ethereum options on Kraken Pro, adding European, cash-settled BTC and ETH contracts to eligible professional and institutional customers. This launch allows mature traders to obtain option exposure on these two major crypto assets directly through US dollar settlement on the exchange's advanced trading platform.

The exchange announced on July 16, 2026 that the new contracts are linear and settled in US dollars, and contracts that expire weekly, monthly, quarterly and semi-annually can be obtained through inquiry when going online.

Portfolio margins are enabled by default, unifying spot, futures and options in a single wallet and accepting more than 30 currencies as collateral. Participation in the initial phase is limited to qualified professional and institutional clients.

Kraken's Alexia Theodorou said that the product broadens users 'access channels through a simple and direct US dollar settlement contract design.

What does dollar-settled crypto options mean for traders

Options are derivatives that give the holder the right, rather than the obligation, to buy or sell the underlying asset at an agreed price before a specified expiration date. Kraken's new contract uses Bitcoin and Ethereum as underlying assets.

Since the contract is settled in USD, the position is settled in USD cash at maturity instead of physical delivery in the underlying cryptocurrency. This is different from the structure of cryptocurrency settlements, where gains and losses and settlements are denominated in BTC or ETH itself.

These contracts are European options, meaning they can only be exercised at expiration, not at any time before. Kraken's official specifications list XBT/USD and ETH/USD options as European and settled in US dollar cash, with maximum open positions of 10 BTC and 100 ETH respectively.

Maximum open position for XBT/USD 10 BTC

Kraken's public specifications page shows that the maximum open position for XBT/USD options is 10 BTC. The specifications set the minimum order quantity as XBT/USD 0.01 contract and ETH/USD 0.1 contract. Settlement uses BTCOPTRR and ETHOPTRR benchmarks, both taken from the 30-minute observation window before 08:00 UTC time.

Option fees for these contracts are capped at 12.5% of the royalties paid, a mechanism that is critical for professional users who manage the execution costs of large transactions.

Option fee cap of 12.5%

Kraken stated that option fee cap on these contracts is 12.5% of the royalties paid.

Why Kraken Pro is the focus of this launch

This launch is specifically for Kraken Pro, not the exchange's interface for retail users. The Pro brand identity reflects the exchange's advanced trading environment, which is inferred based on product positioning rather than clearly stated specifications.

This positioning is consistent with the target audience: Eligible professional and institutional customers access contracts through the inquiry workflow. Unified wallets, portfolio margins and multi-currency collateral align this launch with Kraken's existing institutional promotion initiatives, including a customized crypto vault built in partnership with Upshift.

Option demand from mature trading desks is often concentrated on hedging and structured exposure, and these use cases are more suitable for professional platforms than simple spot interfaces.

How BTC and ETH option launches can integrate into broader market competition

Bitcoin and Ethereum are still flagship assets of crypto-derivative interest, so exchanges will anchor new options products to them first. Bitcoin traded at approximately US$64,321 when it was launched, and its market value exceeded US$1.29 trillion.

At that time, the market was in a cautious mood, and the Cryptographic Fear and Greed Index read 28, which was a "fear" state. This background positions this launch in a market where institutions carefully weigh hedging instruments.

Adding options trading expands Kraken's product breadth relative to regulated established institutions. CME Group said its CFTC regulated market offers more than 20 crypto futures and options products, establishing a benchmark for institutional adopters.

Competition in the derivatives space has intensified as exchanges expand their contract menu, and peers such as Bybit have also launched new tools including perpetual contracts for U.S. stocks. Kraken said it plans to provide options services to European users in the second half of 2026, subject to regulatory confirmation.

FAQs on Kraken's dollar-settled BTC and ETH options

What has Kraken launched?

Kraken announced on July 16, 2026 that it will launch European, cash-settled Bitcoin and Ethereum options on Kraken Pro for eligible professional and institutional customers.

What assets are covered?

Contracts cover BTC and ETH and are offered in the form of XBT/USD and ETH/USD options, with maximum open positions of 10 BTC and 100 ETH respectively.

What does U.S. dollar settlement mean?

USD settlement means that positions are settled in USD cash at maturity rather than physically delivered in the underlying cryptocurrency, and settlement uses Kraken's BTCOPTRR and ETHOPTRR benchmarks.

Where is this product available?

The option is available via inquiry on Kraken Pro and has an expiration cycle including weekly, monthly, quarterly and semi-annual. Visits in Europe are planned to be launched in the second half of 2026, subject to regulatory confirmation.