The landscape of cryptocurrency trading is rapidly maturing, underscored by a significant surge in institutional participation. A prime indicator of this trend is the remarkable performance of Deribit's on-demand liquidity tool, the Block Request-for-Quote (RFQ) interface. Since its launch in early March, this platform has processed a cumulative trading volume exceeding $23 billion in under four months, a testament to the deepening appetite from large-scale traders and institutions for sophisticated crypto financial instruments. This growth narrative unfolds alongside a more complex story in the equity markets, where crypto-linked companies like Semler Scientific (SMLR) navigate the volatility of their underlying digital assets, presenting unique challenges and, for some, compelling opportunities.

Deribit's RFQ Platform Signals Deepening Institutional Roots

Deribit, already a dominant force in the crypto options market for assets like Bitcoin (BTC), Ether (ETH), Solana (SOL), and XRP, designed its RFQ system to cater specifically to professional trading operations. The platform allows institutions to request pricing for large, complex trades, including multi-legged strategies involving spot, futures, and options, away from the public order book. This minimizes price slippage and market impact, a critical requirement for executing substantial orders. The volume growth has been explosive: from $883 million in its inaugural month of March to $6.3 billion in April, followed by a staggering $9.8 billion in May. The momentum has continued, with over $6 billion traded in the first half of June alone. According to data from analyst @GreeksLive, the proportion of block trades executed via the RFQ system has climbed from 17% in April to 27.5% this month, highlighting a clear shift in how institutions prefer to access liquidity.

Why RFQ Growth Matters for Traders

The success of the RFQ system is more than just a volume metric; it signifies a maturing market structure. As noted by Deribit's CEO, the platform enhances price efficiency and reduces adverse selection for market makers, allowing for tighter quotes. For traders (the takers), this translates to better execution prices and the ability to operate with anonymity. This institutional-grade infrastructure is crucial for attracting more conservative capital into the digital asset space. The strong demand for options on BTC, ETH, and even high-beta assets like SOL points to an increasing use of derivatives for both hedging and speculative strategies, adding layers of liquidity and complexity to the overall market. As institutional flow becomes a larger percentage of total volume, it can lead to more predictable price patterns around major options expiries and potentially dampen spot market volatility over the long term.

A Tale of Two Strategies: Corporate BTC Treasuries and Value Investing

While derivatives markets flourish, the strategy of direct corporate Bitcoin adoption has hit a rough patch. Medical technology firm Semler Scientific (SMLR) made headlines by pivoting to a Bitcoin treasury strategy, but its stock has struggled, falling significantly year-to-date. The core issue for traders and investors is its valuation relative to its BTC holdings. With a market capitalization of approximately $420 million against Bitcoin holdings worth around $491 million (based on 4,449 BTC), the company trades at a notable discount. Its multiple-to-net-asset-value (mNAV) has fallen to 0.859x. This is a critical problem for Semler's accumulation strategy, which relies on selling shares to raise capital to buy more BTC. For this to be beneficial to existing shareholders, the stock must trade at a premium to its NAV. At a discount, any new share issuance would be dilutive, effectively halting its primary mechanism for growth.

Tom Lee's Contrarian "Granny Shot" on SMLR

However, where some see distress, others see opportunity. Tom Lee, the renowned Head of Research at Fundstrat, has reportedly added SMLR to his firm's "Granny Shot" portfolio, a collection of unconventional, contrarian investment ideas. The thesis here is likely a value play. An investor buying SMLR stock is effectively acquiring exposure to Bitcoin at a discount to the spot price. This presents a potential arbitrage opportunity, assuming the discount eventually narrows or that the price of BTC appreciates significantly. This situation highlights a key dynamic for traders: crypto-proxy stocks can become disconnected from their underlying asset's value due to broader market sentiment or company-specific factors. During periods of market-wide downturns, as seen with BTC, ETH, and SOL all posting 24-hour losses, such discounts can widen, offering attractive entry points for those with a bullish long-term outlook on Bitcoin.