Crypto Options Market Soars Then Plummets; Institutions Quietly Build Infrastructure Despite Historical Barriers

• The crypto options market saw huge growth starting in mid-2021, followed by a major decline in vault TVL and returns during volatile periods

• Retail-focused options and structured products employed risky short volatility strategies, leading to poor returns

• Institutional providers have quietly built infrastructure to allow institutional investor involvement in crypto structured products

• These products can give investors crypto exposure while customizing payoffs to suit their needs

• Historical issues like fragmented liquidity and pricing disparities have deterred institutional involvement, but growing adoption of crypto is creating demand for institutional-grade crypto investment products