Crypto investors are pouring hundreds of millions of dollars into Bitcoin (BTC) options tied to the upcoming US election, with open interest of around $350 million reflecting strong bullish sentiment.

Bitcoin Options Tied to US Elections See $350 Million in Short Selling, Reflecting Bullish Trend

These election expiration options began trading on Deribit just over a month ago, four days after the Nov. 4 election. Notional open interest, or the total dollar value of active contracts, currently stands at $345.83 million, according to Amberdata.

Most of the interest is concentrated in call options, representing 67% of the total, while the remaining 33% is comprised of put options.

The resulting bid-ask ratio of below 0.50 indicates that call options are twice as likely as put options, indicating optimism that the election results will boost Bitcoin prices.

“These election-specific contracts allow investors to capitalize on the increased interest by speculating on how the election could impact crypto markets in a targeted manner,” said Wintermute, an algorithmic trading firm.

Among the call options, the $80,000 strike price is the most popular with over $39 million in open interest. Generally, investors are investing in higher strike prices ranging from $70,000 to $140,000, suggesting a belief that Bitcoin could reach new record highs as the election approaches.

On the downside, $39 million is locked in the $45,000 put option, suggesting some participants are hedging against potential downsides.

*This is not investment advice.