David Martin of Clear Street on institutional crypto collateral limits

A venture capitalist Martin has known since 2015 recently called him with an unusual question: a software developer who had invested mainly in Ethereum wanted to convert his ETH into an ETF, then use that position on margin to buy crypto-related equities. Martin said he was shocked.

“The thought of this person, who is such a crypto DeFi degenerate, now wanting access to the ETF market, I think that is the staple of what’s going on right now.” Martin argues that revenue patterns reveal where institutional conviction actually sits. Options tied to BlackRock’s IBIT reached nearly $38 billion in open interest, surpassing Deribit’s $32 billion, and IBIT — which only launched options trading in November 2024 — grew rapidly.

By January 2026 IBIT accounted for 52% of total Bitcoin options open interest while Deribit’s share slipped below 39% from more than 90% five years ago, and roughly 30% of Bitcoin spot flow now trades through vehicles tied to TradFi equities or exchange-traded products.

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