As the U.S. election approaches, there is a significant increase in trading volumes due to the anticipation of its impact on crypto markets.

This week, the decentralized derivatives exchange Derive reported that a major institution executed a multi-legged Bitcoin (BTC) options strategy, aiming for a potential uptrend following the November 5 election. This trade, generating a record $25 million in volume, is the largest tied to the U.S. election in on-chain options.

The institution secured 100 call option contracts with a $70,000 strike price, set to expire on November 29, while simultaneously selling or writing contracts for an $80,000 call and a $50,000 put, both due on the same date. They utilized eBTC—a form of bitcoin created through EtherFi—as collateral to earn passive yields.

This strategy resembles a ratio call spread, propelled by a short put position, maximizing profits if Bitcoin reaches $80,000 by the end of November. While centralized trading platforms expect a post-election BTC rally, this move by the institution indicates strong belief in upward momentum.

Nick Forster, co-founder of Derive, noted that this trade represents a pivotal development for on-chain trading, with significant implications expected after the election. He mentioned that it could yield approximately $1,020,000 if Bitcoin hits the $80,000 mark by then—excluding possible gains from eBTC collateral.

Forster emphasized that on-chain options offer scalable, non-correlative yields for any asset traded on-chain. Derive currently leads the on-chain options market, accounting for 32% of total DEX options volume.