Bloomberg: Crypto Futures Daily Volume Surpasses 50% of Spot Volume on Major Exchanges


The cryptocurrency futures market is slowly growing to levels unseen before as daily trading volumes surpass 50% of the total spot volume. According to a report on Bloomberg, 13 exchanges were analyzed in the research showing all showing healthy signs of growth in the cryptocurrency markets.

Futures contract volume surpasses 50% of spot volume

The love-hate relationship on cryptocurrencies since the inception of BTC is further being exemplified by the growth of digital asset futures. According to the article, the cryptocurrency futures markets surpassed the 50% daily spot volume according to data collected from 13 exchanges showing increased interest in assets that were practically non-existent till November 2017.

The exchanges in the report include CME/Globex, Bakkt, Binance, CoinFLEX, Bybit, OKEx, BitMEX, FTX, Bitz, Deribit, HuobiDM, Bitfinex, and Kraken.

The long road to the top for crypto futures

In December 2017, at the heart of the mega bull run in the cryptocurrency market, the Chicago Board of Options (CBOE) and the Chicago Mercantile Exchange (CME) both introduced cash-settled Bitcoin futures which saw massive investment from excited crypto enthusiasts. This started the push towards massive investment in BTC futures. Furthermore, the CFTC commissioned LedgerX physically settled BTC contracts,albeit the low volumes experienced.

Notwithstanding, every major crypto exchange is now switching its business model to incorporate futures trading alongside crypto borrowing and lending. The growing futures market is as a result of the increased avenues to buy and trade the derivatives.

A bright closing quarter in institutional trading

October signaled a bright start for the futures trading as Intercontinental Exchange’s Bakkt futures – synonymous with institutional investors – recorded its all-time high trading volume of 1,183 contracts on Oct. 29. This followed the price pump in BTC’s price to over $10,000 representing over a 42% increase in a day.

Notwithstanding, several exchanges are introducing stable coin settled contracts to ease the customers’ interaction with futures contracts.

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