Options Trading In Crypto With DRW Cumberland’s Wilson Huang

Welcome back to The Gwart Show! Today, Wilson Huang from DRW Cumberland joins us to talk about the explosive growth of Bitcoin options markets, why crypto volatility attracts both miners and hedge funds, how ETFs are reshaping institutional adoption, and why traditional finance principles are finally making sense in digital assets. We dive deep into market structure, OTC trading, and the future of crypto derivatives.

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Notes:

• Bitcoin dominates 90% of crypto options volume

• DRW started 30 years ago in CME trading pits

• ETF volumes reached historic highs recently

• Crypto vol trades in 40-60% range typically

• Cumberland handles thousands of BTC clips OTC

• Mining companies hedge at specific cost levels

Timestamps:

00:00 Start

00:48 Background

02:04 Crypto options markets

04:52 Requirements for a good options market

10:13 How exposed are miners?

19:05 OTC

21:24 Custody

29:53 Spot selling

36:13 Coinbase buying Deribit

41:40 Options & DeFi

45:02 Perpetuals

49:11 The future

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