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Chronicles

The story behind the story

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Crypto derivatives exchange Deribit plans to launch zero-fee spot trading of BTC, ETH, and USDC on April 24, 2023, after Binance ended its zero-fee campaign

Yogita Khatri / The Block :

The Block Yogita Khatri

Context & Ripple Effects

Deribit is a derivatives specialist moving into spot for the first time at scale, and the timing is opportunistic: Binance just ended its zero-fee campaign, leaving a price-sensitive segment of spot flow without a home. The move also caps a rough funding arc — after raising at a $2.1B valuation in 2021, Deribit's follow-on round came at ~$400M — so winning spot volume is partly about rebuilding a story.

Free spot trading as an acquisition funnel has precedent in this corpus: Binance.US eliminated spot bitcoin fees for all customers in 2022 to pull in new investors, and Robinhood built its crypto business on zero-fee BTC and ETH trades back in 2018. What distinguishes Deribit's version is the USDC pairing — quoting against a stablecoin rather than fiat rails.

First-order effects

  • Traders gain a zero-fee venue for BTC, ETH, and USDC spot from April 24, directly undercutting Binance, which has just reintroduced spot fees by ending its campaign.
  • Deribit, whose book was almost entirely derivatives, now competes head-to-head with Binance and other spot-first exchanges on their home turf.

Second-order effects

  • Rivals must decide whether to re-enter the fee war or cede cost-sensitive spot flow; the corpus already shows Binance.US using exactly this lever, so repricing pressure lands on every major venue.
  • The BTC-USDC/ETH-USDC structure anticipates where the market went: Coinbase later rolled out the same stablecoin-quoted pairs for non-US institutions on its international exchange.

Third-order effects

  • Zero-fee spot functioning as a funnel into paid derivatives becomes the template — and the corpus validates it: Deribit's total volume rose 95% YoY to $1.19T in 2024, and Coinbase ultimately paid ~$2.9B for the exchange, effectively pricing in the spot-plus-options flywheel this launch started.
  • If fee-free spot keeps spreading, exchange revenue migrates structurally from retail trading commissions toward derivatives, listings, and spread capture — with only the largest balance sheets able to subsidize spot indefinitely.

The trend: Crypto exchanges are converging on zero-fee spot as a customer-acquisition subsidy for higher-margin derivatives, a playbook that ends in consolidation around the venues that can afford it.

Discussion

  • @crypto_crib_ @crypto_crib_ on x
    Deribit adds zero-fee spot trading, allowing traders to exchange major cryptocurrencies with out any fees 🤝
  • @wublockchain Wu Blockchain on x
    Crypto option exchange Deribit will launch its zero-fee spot exchange on April 24, with users initially able to trade BTC/USDC, ETH/USDC and ETH/BTC. Spot trading on Deribit, like its derivatives platform, will not be available to users in the US and some other restricted... http…
  • @deribitexchange @deribitexchange on x
    🚀 Deribit to Launch Zero-Fee Spot Trading 🚀 📅 24 April 2023, 13:00 UTC 💰 Maker 0% / Taker 0%. 👬 BTC/USDC, ETH/USDC and ETH/BTC #Cryptoptions #BTC #ETH #USDC #Cryptonews #DeribitExchange https://insights.deribit.com/ ...