Bullish Options Volume Doubles in December Amid Spot Market Cooldown

CAYMAN ISLANDS – January 09, 2026 – Institutional digital asset platform Bullish (NYSE: BLSH) released its monthly metrics for December 2025, revealing a complex picture of the crypto market at year-end. While the platform saw a significant decline in spot trading volumes, consistent with a broader market-wide cooling, its derivatives business surged, with options trading volume more than doubling in a single month. The data highlights a pivotal shift in institutional strategy, with sophisticated financial instruments gaining prominence even as general market activity retracts.

Bullish reported a total trading volume of $61.1 billion for December, a 25% decrease from November's $80.8 billion. The decline was primarily driven by a slowdown in its spot markets, which accounted for $52.2 billion, down from $75.3 billion the previous month. Bitcoin spot trading, a key bellwether for market activity, fell by 33% to $25.9 billion. This downturn occurred as the price of Bitcoin itself dipped by 3.2% to close the month around $87,500.

A Year-End Cooldown in Spot Markets

The drop in trading activity on Bullish was not an isolated event. It mirrored a general trend across the digital asset industry, as centralized exchanges (CEXs) collectively reported a 32% drop in spot trading volume for December. After a volatile year that saw Bitcoin prices soar to record highs above $126,000 before a significant Q4 correction, the year-end figures suggest a period of consolidation and risk-off behavior among traders.

Further reinforcing this cooling trend, volatility metrics for the two largest cryptocurrencies also decreased. According to Bullish's report, which uses data from its subsidiary CoinDesk, Bitcoin's monthly average volatility fell to 39% in December from 45% in November. Ethereum saw a similar drop, with its volatility decreasing to 53% from 68% over the same period. The lower volatility and reduced trading volumes paint a picture of a market taking a breath after a turbulent year, with many institutional players potentially closing out positions and re-evaluating strategies ahead of the new year.

While December marked a slowdown, Bullish's performance over 2025 showcased significant activity. The exchange recorded a total trading volume of $179.6 billion in the second quarter alone, demonstrating its capacity to handle substantial institutional flows during more active market periods.

The Unmistakable Rise of Derivatives

While the spot market narrative was one of retraction, the standout story from Bullish's December report was the explosive growth in its options market. Options trading volume rocketed to $6.2 billion, a more than 120% increase from the $2.8 billion recorded in November. This surge is particularly remarkable given that Bullish only launched its crypto options trading services in the third quarter of 2025, where it quickly surpassed $1 billion in volume.

The rapid adoption of Bullish's derivatives products points to a broader, more significant trend: the maturation of the institutional crypto market. As institutional investors deepen their engagement with digital assets, they are increasingly demanding the same sophisticated tools for risk management, hedging, and complex trading strategies that are standard in traditional finance. Options and other derivatives provide these essential mechanisms.

This trend extends far beyond a single platform. CME Group, a titan in traditional and crypto derivatives, reported a record year in 2025, with its average daily crypto derivatives volume hitting approximately $12 billion in notional value. The parallel growth at both established players like CME and newer, crypto-native institutional platforms like Bullish underscores a powerful industry-wide shift. Institutions are no longer just buying and holding; they are actively managing their exposure with advanced financial instruments.

Navigating a Regulated Crypto Landscape

Bullish's ability to attract significant derivatives volume is deeply intertwined with its strategic focus on regulatory compliance. In a year marked by a global push for clearer crypto rules, Bullish has positioned itself as a regulated and transparent venue for institutional players. This strategy appears to be paying dividends, particularly in attracting clients who require stringent compliance for their operations.

Bullish Europe operates under the European Union's comprehensive Markets in Crypto-Assets (MiCAR) regulation, making it a licensed crypto asset service provider. In the United States, the company secured the highly sought-after New York Department of Financial Services (DFS) Bitlicense in September 2025, paving the way for its U.S. market expansion. This multi-jurisdictional regulatory footprint provides a level of security and legitimacy that is critical for large financial institutions.

The company's commitment to transparency, demonstrated by its regular release of detailed monthly metrics, further strengthens this position. By providing consistent, unaudited performance data, Bullish offers a degree of insight that is often lacking in the historically opaque crypto space, building trust with investors and regulators alike.

Competitive Pressures and Market Positioning

Despite its growth in the derivatives niche, Bullish operates in a fiercely competitive environment dominated by giants. Its December spot volume of $52.2 billion is a fraction of the $367 billion reported by market leader Binance for the same period. However, Bullish is not aiming to be a retail-focused behemoth. Its target is the high-value institutional segment, where it competes with specialized offerings like Coinbase Institutional and Kraken Institutional.

In this arena, the battle is fought not just on volume but on liquidity, security, advanced trading tools, and, crucially, regulatory standing. Competitors are also making aggressive moves, such as Coinbase's acquisition of leading options exchange Deribit in 2025, which significantly expanded its derivatives capabilities. Bullish's unique proposition lies in its integrated model, which combines a high-performance exchange with an automated market maker to ensure deep liquidity, alongside the information services of its subsidiary CoinDesk. As institutional players demand both sophisticated financial instruments and stringent regulatory oversight, Bullish is positioning itself to compete on the grounds of trust and technological capability in the evolving digital asset marketplace.