Binance Unlocks Ether Options Writing for All Users, Chasing Retail Demand for Pro-Level Strategies

Binance, the world's largest cryptocurrency exchange by volume, announced Tuesday it has opened Ether (ETH) options writing to all users, democratizing a sophisticated income-generating strategy once reserved for professional traders.

The move, detailed in a press release shared with CoinDesk, responds to what Binance sees as burgeoning demand from both retail and institutional investors for more advanced derivative tools. It follows the exchange's earlier decision to allow universal access to Bitcoin options writing and reflects a broader market trend where crypto derivatives are gaining mainstream traction.

Options writing involves selling contracts that give another trader the right—but not the obligation—to buy (a call) or sell (a put) an asset at a set price by a future date. The writer, or seller, collects an upfront payment called a premium, which serves as immediate income. While savvy traders use this to generate yield, it carries significant risk; if the market moves sharply against the writer's position, losses can be substantial.

To manage this risk, Binance requires all users to pass a mandatory suitability assessment before they can access the feature.

"The introduction of ETH Options writing and our Options platform upgrade will empower traders with faster execution, greater flexibility, and richer market data," said Jeff Li, VP of Product at Binance. He added the goal is to support "more advanced and strategic trading approaches in the growing crypto derivatives space."

To bolster its competitive position, Binance has also significantly upgraded its options platform. The exchange claims the new infrastructure offers higher API throughput and lower latency, critical for high-frequency traders. To attract immediate liquidity, Binance is offering a steep 20% discount on Taker and Maker fees for VIP users across its newly listed ETH, BTC, BNB, and SOL contracts.

This expansion comes as the institutional appetite for crypto derivatives becomes undeniable. Earlier this year, options on BlackRock’s IBIT spot bitcoin ETF saw their trading volume surpass that of native BTC options on the dominant platform, Deribit—a milestone signaling deeper integration with traditional finance.