Recent reports have now shown that the volume of trades on crypto futures is rising at an impressive rate over a very short period of time, and is very close to half of the volume on crypto exchanges from spot trading. According to a Bloomberg report, futures trading is largely responsible for considerably controlling crypto volatility, attracting more investors, helping to calm regulatory fierceness as well as improving liquidity.
The data was pulled from an analysis of 13 of the biggest crypto exchanges to show the impressive numbers. The platforms include the Chicago Mercantile Exchange Group (CME), OKEx, Coin Flex, Bitz, Bybit, BitMEX, Bakkt, Bitfinex, the Huobi Derivative Market (DM), Binance, FTX, Deribit and Kraken.
What makes this information a lot more interesting is the fact that spot trading is a lot “older” than futures trading. Spot trading basically describes the purchase or sale of an asset at the exact time the trade took place. Bitcoin futures didn’t launch until Dec. 2017, when the Chicago Board Options Exchange floated the first one. A week later, the Chicago Mercantile Exchange Group (CME) also launched its own Bitcoin futures market.
Bakkt, for example, is finally picking up steam considerably and now has a 1,183 all time high record for its Bitcoin futures contracts, to the tune of about $11 million. Another platform on the list, OKEx, has also revealed that it will begin trading futures for Tether’s USDT, by Nov. 6.
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