Kraken Launches Regulated BTC and ETH Options in the European Economic Area

Kraken rolled out European-style, cash-settled options on $BTC and $ETH for eligible clients in the European Economic Area on Oct. 26 ¹. The instruments are accessible via web and mobile through Kraken Pro, allowing traders to manage options directly from existing derivatives accounts ¹.

The contracts are linear and settled in USD, meaning option premiums, realized profit-and-loss, and settlements are calculated in dollars ¹. Trading operates via a request-for-quote (RFQ) mechanism supporting execution with up to five legs per order ¹. Available expiries span weekly, monthly, quarterly, and semi-annual horizons ¹. Rather than requiring upfront premiums, Kraken utilizes futures-style margining with portfolio margin enabled by default, which offsets margin requirements across complementary positions ¹. Over 30 collateral currencies are supported alongside futures contracts, and distressed portfolios will be resolved via sealed-offer auctions rather than direct order book liquidations ¹.

Regulatory Framework and Structure

The options rollout builds upon Kraken's unified infrastructure for European clients, following the exchange's previous work to launch unified margin wallets for EEA traders ¹. Regulated services for the options suite are provided by Cyprus Securities and Exchange Commission (CySEC)-authorized broker Payward Europe Digital Solutions (CY) Limited under a MiFID license, while digital asset custody is maintained separately by MiCA-licensed Payward Europe Solutions Limited ¹. Clients must complete an appropriateness questionnaire before trading permissions are granted ¹.

At the time of writing, $BTC traded at $80,376 while $ETH stood at $2,330 amid a neutral market sentiment. Kraken stated that Europe remains a primary target market for its regulated institutional and retail derivatives expansion, with the MiFID-compliant framework enabling compliant derivatives distribution throughout the bloc ¹.