2 days ago · 3 min read
The crypto market is bigger than ever, and so is the crypto derivatives market
The changes that have taken place in the crypto market over the last few years have been nothing short of remarkable.
Thanks to heightened visibility, public endorsement from public figures such as Elon Musk, among others, and some impressive bull runs, cryptocurrency is more popular than ever.
This means more people hold and operate crypto accounts. As a result, crypto exchanges and brokers have seen more transaction volumes. Public awareness of the industry is at an all-time high. With this new popularity, the sector is full of hungry competitors providing consumers with products and offerings that aim to meet the needs of crypto fanatics.
Derivative traders face a huge problem, but who will they turn to?
Previously there has been a greater demand for cryptocurrency-related products and services in general. Even though that demand still exists, there is even more of a demand for crypto derivatives. However, the journey to providing derivatives services has not been as straightforward. The current regulatory climate is often hostile to cryptocurrencies, especially since some lawmakers still look at the industry with suspicion and contempt.
Even Binance, one of the biggest crypto exchanges globally, was forced to suspend derivatives trading in several countries due to regulatory issues. As a result, derivative traders who have accounts with the exchange are now worried about their trades and funds, especially as withdrawal limits were seen to be slashed daily. So, is there a broker those traders and new potential crypto derivatives traders can turn to?
Derivative traders don’t have to look very far for an answer to their problems. Eightcap, an Australian broker, recently announced the launch of over 250 cryptocurrency derivatives. This has positioned it as the largest crypto derivatives offering in the industry.
Eightcap is regulated by the Australian Securities and Investments Commission (ASIC), the Financial Conduct Authority (FCA), the Cyprus Securities and Exchange Commission (CYSEC) and the Securities Commission of The Bahamas (SCB). Eightcap says that its customers have an alternative solution. Clients at other brokers and exchanges who are currently affected by the current issues will now have a new home for their crypto derivative trades. Joel Murphy, CEO of Eightcap touched on regulation by saying:
“The regulatory issues crypto exchanges such as Binance are facing means traders are left with unnecessary worries about their funds and if they can withdraw them. With us, Crypto derivative traders can have a seamless experience from the moment they open an account to when they want to withdraw their funds.”
As well as crypto derivatives, Eightcap offers Forex, Indices, Commodities, and Share CFDs. More announcements from the company are expected soon.
Other crypto derivatives brokers have reported actually seeing some benefit from these government regulations. The Chinese government, for example, is cracking down on cryptocurrency and the management of dYdX, a decentralized crypto derivatives trading platform, has reported that adoption within China has increased as a result.
On September 26, 2021, dYdX exceeded Coinbase’s daily transaction volume by over 15% to a record $4.3 billion. Antonio Juliano, the founder of dYdX and a former Coinbase employee, took to Twitter to share the news.
5 years ago I left @coinbase and eventually founded dYdX
— Antonio | dYdX ? (@AntonioMJuliano) September 26, 2021
The crypto industry is known to be resilient and it seems that both the derivatives brokers and the investors themselves are not folding under pressure but innovating towards the future and reaping the benefits.
Posted In: Derivatives