Crypto derivatives trading sees significant increase as institutional interest in the space grows ๐จ This article is 5 years old...
Crypto derivatives trading sees significant increase as institutional interest in the space grows
3 min read
Updated: Apr. 6, 2020 at 1:18 am UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
CryptoCompare‘s November review showed a significant interest in crypto derivatives trading. While regulated bitcoin futures and options on CME are up 35.2 percent since last month, more volume was traded on crypto exchanges, with OKEx reporting a total monthly derivatives volume of $91.5 billion.
Derivatives trading becoming more and more popular both among institutional and retail investors
CryptoCompare‘s monthly exchange review continues to be one of the best ways to gain insight into the crypto market. The company’s data-driven report is an invaluable asset to those monitoring the crypto space and paints a more objective picture when it comes to market trends.
The company’s latest report showed that trends that were identified in some of the previous months rolled into November as well. Back in July, the data showed that crypto trader preferred small and riskier exchanges over the high-volume, regulated ones.
Exchanges rated C through F still held onto almost 69 percent of the market, despite seeing a 3 percent decrease from the previous month.
However, there seems to be a new trend emerging in the crypto industry. According to data from CryptoCompare, crypto derivatives products are becoming more and more popular both among institutional investors and traders.
Regulated bitcoin derivatives products began gaining traction, with CME’s total trading volumes up more than 35 percent, jumping from $3.12 billion in October to $4.22 billion last month.
The market seems to love trading Bitcoin derivatives
While boasting a significant increase, trading volumes on regulated derivatives exchanges are way behind volumes seen by crypto exchanges. Data from CryptoCompare showed that OKEx, whose volume accounted for 28 percent of the market, traded a total of $91.5 billion.
OKEx’s volume, which decreased less than 0.5 percent was followed by Huobi, whose $89.5 billion trading volume increased 10.5 percent since last month. Interestingly enough, both Huobi and OKEx had the same market share.
Chart showing the daily trading volume for derivatives products by exchange. (Source: CryptoCompare)The most traded product by total monthly volume was Huobi’s Quarterly Bitcoin Future WITH $46.1 billion and BitMEX‘s perpetual Bitcoin future with almost $38 billion. Newcomer Binance‘s $32.3 billion BTC perpetual future volume was equally as impressive.
Ethereum futures, on the other hand, saw much smaller volumes. CryptoCompare reported that with a $4.4 billion volume, BitMEXโs product was the most traded ETH perpetual future. However, the exchange saw its volume decrease 24 percent in November alone. Similar products on OKEx and Deribit traded $2.54 billion and $750 million, respectively.
The $147 million, $84 million, and $25 million ETH products that were traded on BitMEX, OKEx, and Deribit on average are a far cry from the daily volumes seen with Bitcoin derivatives. In average daily trading volumes for Bitcoin futures, BitMEX, Binance, and BitFlyer traded a daily average of $1.26Bn, $1.07Bn and $760Mn respectively.
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Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
Ethereum
$3,380.04
Ethereum is a decentralized, open-source blockchain platform that enables the creation of smart contracts and decentralized applications (DApps).
OKX
OKX is a world-leading digital asset exchange, providing advanced financial services to global traders by using blockchain technology.
Binance
Binance is a global cryptocurrency exchange that provides a platform for trading more than 100 cryptocurrencies.
BitMEX
HDR Global Trading Limited owns and operates BitMEX which is a trading platform that offers investors access to the global financial markets using only Bitcoin.
CryptoCompare provides real-time, high-quality and reliable market and pricing data on 5,700+ coins and 260,000+ currency pairs globally, bridging the gap between the crypto asset and traditional financial markets.