{"id":173876,"date":"2024-10-28T15:53:18","date_gmt":"2024-10-28T15:53:18","guid":{"rendered":"https:\/\/crypto-economy.com\/?p=173876"},"modified":"2024-10-28T15:53:21","modified_gmt":"2024-10-28T15:53:21","slug":"crypto-exchanges-turn-to-derivatives-for-growth-71-market-share-and-rising","status":"publish","type":"post","link":"https:\/\/crypto-economy.com\/crypto-exchanges-turn-to-derivatives-for-growth-71-market-share-and-rising\/","title":{"rendered":"Crypto Exchanges Turn to Derivatives for Growth: 71% Market Share and Rising"},"content":{"rendered":"<p style=\"text-align: justify\"><strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">TL;DR<\/span><\/span><\/strong><\/p>\n<ul style=\"text-align: justify\">\n<li><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">Cryptocurrency platforms are betting on derivatives to attract cautious investors.<\/span><\/span><\/li>\n<li><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">Derivatives allow trading with high leverage, which is attractive in a market with less access to credit.<\/span><\/span><\/li>\n<li><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">Major players such as CME Group and Kraken are competing with new entrants such as D2X and One Trading in this growing market.<\/span><\/span><\/li>\n<\/ul>\n<hr \/>\n<p style=\"text-align: justify\"><strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\"><a href=\"https:\/\/crypto-economy.com\/cryptocurrencies-from-a-to-d\/\">Crypto<\/a> platforms<\/span><\/span><\/strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\"> are <\/span><span style=\"vertical-align: inherit\">turning their attention to <\/span><\/span><strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">financial derivatives<\/span><\/span><\/strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\"> as a way to attract investors who have so far been more cautious about the <\/span><strong><span style=\"vertical-align: inherit\">digital<\/span><\/strong><\/span><strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\"> asset<\/span><\/span><\/strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\"> <strong>market.<\/strong><\/span><\/span><\/p>\n<p><!--more--><\/p>\n<p style=\"text-align: justify\"><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">With an increasingly strict <\/span><\/span><strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">regulatory<\/span><\/span><\/strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\"> framework, these platforms seek to offer high <\/span><\/span><strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">leverage<\/span><\/span><\/strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\"> opportunities through <\/span><\/span><strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">futures<\/span><\/span><\/strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\"> and <\/span><\/span><strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">options<\/span><\/span><\/strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\"> on cryptocurrencies such as <\/span><\/span><a href=\"https:\/\/crypto-economy.com\/what-is-bitcoin\/\"><strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">Bitcoin<\/span><\/span><\/strong><\/a><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\"> and <\/span><\/span><strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">Ether<\/span><\/span><\/strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">.<\/span><\/span><\/p>\n<p style=\"text-align: justify\"><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">These types of products have attracted a lot of interest because they allow investors to trade at a fraction of the total cost of the asset, thereby amplifying potential profits.<\/span><\/span><\/p>\n<p style=\"text-align: justify\"><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">New platforms are emerging in this space, such as Dutch-based <\/span><\/span><strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">D2X<\/span><\/span><\/strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">, which will launch its cryptocurrency futures next month, and <\/span><span style=\"vertical-align: inherit\">London-based <\/span><\/span><strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">One Trading<\/span><\/span><\/strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\"> and <\/span><\/span><strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">GFO-X, which plan to introduce their services early next year.<\/span><\/span><\/strong><\/p>\n<p style=\"text-align: justify\"><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">These newer players are competing with established leaders such as <\/span><\/span><strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">CME Group<\/span><\/span><\/strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">, <\/span><\/span><strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">Kraken<\/span><\/span><\/strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\"> and <\/span><\/span><strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">Binance<\/span><\/span><\/strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">, who have been major players in this sector.<\/span><\/span><\/p>\n<p style=\"text-align: justify\"><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">According to the <\/span><\/span><a href=\"https:\/\/www.ft.com\/content\/2c53eed9-c931-4429-b079-c1d1e52a26fa\" target=\"_blank\" rel=\"noopener\"><em><strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">Financial Times<\/span><\/span><\/strong><\/em><\/a><strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">, Kraken<\/span><\/span><\/strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\"> has recently launched a <\/span><strong><span style=\"vertical-align: inherit\">Bermuda-<\/span><\/strong><span style=\"vertical-align: inherit\"><strong>based<\/strong> <\/span><\/span><strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">derivatives<\/span><\/span><\/strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\"> platform to further expand its offering.<\/span><\/span><\/p>\n<p style=\"text-align: justify\"><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">The price of <\/span><\/span><strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">Bitcoin<\/span><\/span><\/strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\"> has risen more than 50% this year, surpassing $67,000, and <\/span><\/span><strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">derivatives<\/span><\/span><\/strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\"> now account for 71% of total trading volume in <\/span><\/span><strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">digital assets<\/span><\/span><\/strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">, according to data from <\/span><\/span><strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">CCData<\/span><\/span><\/strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">.<\/span><\/span><\/p>\n<p style=\"text-align: justify\"><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">This reflects how investors have changed their approach to these products, partly because <\/span><\/span><strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">leverage<\/span><\/span><\/strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\"> allows for increased bets without the need to have large amounts of capital up front.<\/span><\/span><\/p>\n<p style=\"text-align: justify\"><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">Platforms like <\/span><\/span><strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">Bybit<\/span><\/span><\/strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\"> allow leverages of up to 125x, while <\/span><\/span><strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">Kraken<\/span><\/span><\/strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\"> offers up to 50x, which is very attractive in a market where lending has declined since the fall of large lenders like <\/span><\/span><strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">Genesis<\/span><\/span><\/strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\"> and <\/span><\/span><strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">BlockFi<\/span><\/span><\/strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">.<\/span><\/span><\/p>\n<p><img fetchpriority=\"high\" decoding=\"async\" class=\"aligncenter size-full wp-image-92690\" src=\"https:\/\/crypto-economy.com\/es\/\/wp-content\/uploads\/sites\/4\/2024\/10\/markets.jpg\" alt=\"Cryptocurrency Exchanges Bet on Derivatives for Growth: 71% of the Market and Rising\" width=\"825\" height=\"300\" \/><\/p>\n<h2><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">Expansion of the cryptocurrency derivatives market<\/span><\/span><\/h2>\n<p style=\"text-align: justify\"><strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">The crypto derivatives<\/span><\/span><\/strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\"> market <\/span><span style=\"vertical-align: inherit\">is growing rapidly due to the advantages it offers, such as <\/span><\/span><strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">capital efficiency<\/span><\/span><\/strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\"> and reduced risks associated with the direct purchase of <\/span><\/span><strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">tokens<\/span><\/span><\/strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">.<\/span><\/span><\/p>\n<p style=\"text-align: justify\"><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">This makes it especially attractive for investment managers looking for exposure to <\/span><\/span><strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">cryptocurrencies<\/span><\/span><\/strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\"> on regulated platforms like <\/span><\/span><strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">CME Group<\/span><\/span><\/strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">.<\/span><\/span><\/p>\n<p style=\"text-align: justify\"><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">The latter has seen a boom in trading volume and <\/span><\/span><strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">open interest<\/span><\/span><\/strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\"> in its contracts, partly driven by the introduction of weekly futures, such as the &#8220;Bitcoin Friday futures&#8221;, which are aligned with the <\/span><\/span><strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">New York<\/span><\/span><\/strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\"> trading week schedule.<\/span><\/span><\/p>\n<p style=\"text-align: justify\"><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">On the other hand, new platforms seeking to attract institutional investors are placing a strong emphasis on <\/span><\/span><strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">regulatory<\/span><\/span><\/strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\"> compliance.<\/span><\/span><\/p>\n<p style=\"text-align: justify\"><strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">One Trading<\/span><\/span><\/strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">, for example, stands out for being the only one in Europe that offers perpetual futures to both retail and institutional clients on the same platform.<\/span><\/span><\/p>\n<p style=\"text-align: justify\"><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">Additionally, <\/span><strong><span style=\"vertical-align: inherit\">Nasdaq<\/span><\/strong><span style=\"vertical-align: inherit\"><strong>-listed<\/strong> <\/span><\/span><strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">Coinbase<\/span><\/span><\/strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\"> is finalizing the purchase of a regulated entity in <\/span><strong><span style=\"vertical-align: inherit\">Cyprus<\/span><\/strong><span style=\"vertical-align: inherit\"> that will allow it to expand into the <\/span><strong><span style=\"vertical-align: inherit\">European Union<\/span><\/strong><span style=\"vertical-align: inherit\"> with regulated <\/span><strong><span style=\"vertical-align: inherit\">derivatives<\/span><\/strong><span style=\"vertical-align: inherit\">.<\/span><\/span><\/p>\n<p style=\"text-align: justify\"><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">Competition in this market is intensifying as more <\/span><\/span><strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">exchanges<\/span><\/span><\/strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\"> look to innovate and attract investors through new, efficient products and regulatory compliance that offers security in an increasingly regulated environment.<\/span><\/span><\/p>\n<h3 style=\"text-align: justify\"><\/h3>\n","protected":false},"excerpt":{"rendered":"<p>TL;DR Cryptocurrency platforms are betting on derivatives to attract cautious investors. Derivatives allow trading with high leverage, which is attractive in a market with less access to credit. Major players such as CME Group and Kraken are competing with new entrants such as D2X and One Trading in this growing market. Crypto platforms are turning &#8230; <\/p>\n<p class=\"read-more-container\"><a title=\"Crypto Exchanges Turn to Derivatives for Growth: 71% Market Share and Rising\" class=\"read-more button\" href=\"https:\/\/crypto-economy.com\/crypto-exchanges-turn-to-derivatives-for-growth-71-market-share-and-rising\/#more-173876\" aria-label=\"More on Crypto Exchanges Turn to Derivatives for Growth: 71% Market Share and Rising\">Read more<\/a><\/p>\n","protected":false},"author":33,"featured_media":173882,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"rank_math_lock_modified_date":false,"footnotes":""},"categories":[9156,84,74],"tags":[4620,5536,4656,5001],"_links":{"self":[{"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/posts\/173876"}],"collection":[{"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/users\/33"}],"replies":[{"embeddable":true,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/comments?post=173876"}],"version-history":[{"count":2,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/posts\/173876\/revisions"}],"predecessor-version":[{"id":173883,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/posts\/173876\/revisions\/173883"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/media\/173882"}],"wp:attachment":[{"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/media?parent=173876"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/categories?post=173876"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/tags?post=173876"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}