Sunday, January 17, 2021
Bitcoin Market News
  • Home
  • Bitcoin
  • Market
  • Cash
  • Price
  • Beginners
  • Gold
  • Private
  • Cryptos
  • Investors
  • Technical
  • Crash
  • Spam
  • Stock
  • Blockchain
  • Videos
  • Home
  • Bitcoin
  • Market
  • Cash
  • Price
  • Beginners
  • Gold
  • Private
  • Cryptos
  • Investors
  • Technical
  • Crash
  • Spam
  • Stock
  • Blockchain
  • Videos
Bitcoin Market News
No Result
View All Result

Record Bitcoin Options Market Volume Shows Institutions Keen on Crypto

6 months ago
in Market
3 min read
Record Bitcoin Options Market Volume Shows Institutions Keen on Crypto
Share on FacebookShare on Twitter


A CryptoCompare report published on July 6 has closely analyzed monthly trends in the cryptocurrency exchange market and found that crypto derivatives volumes have begun to taper off after peaking this May. Crypto derivatives volumes dropped 35.7% in June to $393 billion.

Historical Monthly Derivatives Volumes

Historical Monthly Derivatives Volumes. Source: CryptoCompare

The overall trend which was also observed in the spot markets can be partially explained by the lack of volatility currently seen in Bitcoin and the majority of crypto assets within the market. There are a few exceptions like DeFi tokens, which have outperformed Bitcoin (BTC) considerably in the last month.

Despite the drop in overall volumes for the derivatives markets, regulated options seem to be gaining popularity. In June, the total volume for Bitcoin options on the Chicago Mercantile Exchange (CME) rose by 41% to reach another all-time monthly high with 8,444 contracts traded. Meanwhile, BTC futures traded on CME decreased by 23% in June which was still the second biggest month in 2020.

CME Options and Futures Contract Volumes

CME Options and Futures Contract Volumes. Source: CryptoCompare

Other signs of institutionalization

While the soaring volumes in the CME are a pleasant sign for those who are patiently awaiting institutionalization as the catalyst which will bring Bitcoin and other cryptocurrencies to new heights, there are other factors pointing to this change. 

These trends are already observed in funds like GBTC which boast an institutional investor demographic of over 80% and is currently managing $4.1 billion dollars worth of digital assets. Barry Silbert, CEO at GBTC’s Digital Currency Group, tweeted that the fund has recently gone through its biggest raise yet, although no details are yet known.

Companies that cater to institutional needs are also jumping on the crypto bandwagon, further cementing this trend. For example, KPMG, one of the UK’s big four accounting firms, launched a cryptocurrency management platform called Chain Fusion. In a recent report by the firm, KPMG said:

“Institutionalization is the at scale participation in the market by small and large entities within the global financial ecosystem, including banks, broker dealers, exchanges, payment providers, fintechs and service providers.”

How institutions can change crypto

As institutions continue to hop into Bitcoin, it’s possible that this trend will continue which in turn can bring many advantages to the overall market.

Institutional investors require safe, transparent trading venues whereas a number of cryptocurrency exchanges are known for falsified trading volumes, wash trading, and worse. 

Philip Gradwell, chief economist of Chainalysis, recently said:

“If you want to get serious money into crypto, you have got to build up their confidence that there are actually good trading venues […] If you’re an exchange and you have good incentives to report real volume, you may actually get institutional money coming in, but if you don’t have those incentives, they’ll…



Read more:Record Bitcoin Options Market Volume Shows Institutions Keen on Crypto

Related articles

Five things you need to know about on the markets this week – Biden, big banks and

Five things you need to know about on the markets this week – Biden, big banks and

January 17, 2021
3 Stocks That Are Better Than Bitcoin | The Motley Fool

3 Stocks That Are Better Than Bitcoin | The Motley Fool

January 16, 2021
Tags: Bitcoinbitcoin news todayCryptoInstitutionsKeenMarketOptionsrecordshowsVolume

Related Posts

Five things you need to know about on the markets this week – Biden, big banks and

Five things you need to know about on the markets this week – Biden, big banks and

by Bitcoin Market
January 17, 2021
0

Workers hang the flags on the West Front facade in preparation for President-elect Joe Bidens inauguration Bill Clark/Getty Images...

3 Stocks That Are Better Than Bitcoin | The Motley Fool

3 Stocks That Are Better Than Bitcoin | The Motley Fool

by Bitcoin Market
January 16, 2021
0

Bitcoin has received a lot of attention from investors, especially over the past year, as the price of the...

3iQ’s Canadian Bitcoin Fund Hits C$1B in Market Cap

3iQ’s Canadian Bitcoin Fund Hits C$1B in Market Cap

by Bitcoin Market
January 16, 2021
0

TipRanksRaymond James: 2 Big 7% Dividend Stocks to Buy NowWatching the markets with an eye to the main chance,...

‘Shark Tank’ star Kevin O’Leary slams Bitcoin as niche and poorly regulated: ‘a giant

‘Shark Tank’ star Kevin O’Leary slams Bitcoin as niche and poorly regulated: ‘a giant

by Bitcoin Market
January 15, 2021
0

"Shark Tank"/ABC "Shark Tank" investor Kevin O'Leary criticized Bitcoin as niche, illiquid, and poorly regulated."Bitcoin is still a nothingburger,...

Crypto Market Update: Bitcoin Flirts With $40,000 Level Again, XRP Sits Out Rally

Crypto Market Update: Bitcoin Flirts With $40,000 Level Again, XRP Sits Out Rally

by Bitcoin Market
January 15, 2021
0

Bitcoin (BTC) briefly crossed the $40,000 mark on Thursday after having retreated to near $30,000-levels this week. The apex...

Load More

Trend Now

  • Trending
  • Comments
  • Latest
Twitch Director Shaan Puri Moves 25% of Net Worth Into Bitcoin to ‘Front Run Wave of

Twitch Director Shaan Puri Moves 25% of Net Worth Into Bitcoin to ‘Front Run Wave of

December 11, 2020
Ledger Wallet Data Leak Dumped on Raidforums for Free, Company Regrets the Situation

Ledger Wallet Data Leak Dumped on Raidforums for Free, Company Regrets the Situation

December 21, 2020
Argo Blockchain boosts mining margins in July

Argo Blockchain boosts mining margins in July

August 5, 2020
J.K. Rowling Twitter Storm shows the Crypto Ecosystem Needs to Mature – CityAM

J.K. Rowling Twitter Storm shows the Crypto Ecosystem Needs to Mature – CityAM

May 19, 2020
Three Gorges Dam Collapse Mining Threat, China Banks Ban Buying Gold: The Bitcoi…

Three Gorges Dam Collapse Mining Threat, China Banks Ban Buying Gold: The Bitcoi…

December 4, 2020
The Most Secure Cryptocurrency Wallets for Different Users

The Most Secure Cryptocurrency Wallets for Different Users

November 1, 2020
Bitcoin chaos: Wall Street icon Burton Malkiel explains how cryptocurrency could

Bitcoin chaos: Wall Street icon Burton Malkiel explains how cryptocurrency could

0
Bitcoin daily chart alert – Bullish chart pattern develops – May 19

Bitcoin daily chart alert – Bullish chart pattern develops – May 19

0
Calvin Ayre Invests in True Reviews: A New Take on Consumer Review Sites Built on the

Calvin Ayre Invests in True Reviews: A New Take on Consumer Review Sites Built on the

0
J.K. Rowling Twitter Storm shows the Crypto Ecosystem Needs to Mature – CityAM

J.K. Rowling Twitter Storm shows the Crypto Ecosystem Needs to Mature – CityAM

0
Crypto.com’s MCO Visa Cards Are Now Shipping In Europe – Fintech Singapore

Crypto.com’s MCO Visa Cards Are Now Shipping In Europe – Fintech Singapore

0
Elon Musk tried to explain Bitcoin to JK Rowling on Twitter and this happened

Elon Musk tried to explain Bitcoin to JK Rowling on Twitter and this happened

0
Bitcoin chaos: Wall Street icon Burton Malkiel explains how cryptocurrency could

Bitcoin chaos: Wall Street icon Burton Malkiel explains how cryptocurrency could

January 17, 2021
Signal is back

Signal is back

January 17, 2021
SDPD warning the public of new phone scam

SDPD warning the public of new phone scam

January 17, 2021
Calvin Ayre Invests in True Reviews: A New Take on Consumer Review Sites Built on the

Bitcoin Evolution Review: Comprehensive Sign Up Guide For Bitcoin Evolution Trading

January 17, 2021
Bitcoin millionaire’s exes set to be stripped of cars, cash

Bitcoin millionaire’s exes set to be stripped of cars, cash

January 17, 2021
Calvin Ayre Invests in True Reviews: A New Take on Consumer Review Sites Built on the

Bitcoin Era Review: The Official App Seen on TV This Morning

January 17, 2021
  • Contact Us
  • Terms of Use
  • Cookie Privacy Policy
  • Privacy Policy
  • DMCA

© 2020 MarketForBitcoin.com

No Result
View All Result
  • Home
  • Bitcoin
  • Market
  • Cash
  • Price
  • Beginners
  • Gold
  • Private
  • Cryptos
  • Investors
  • Technical
  • Crash
  • Spam
  • Stock
  • Blockchain
  • Videos

© 2020 MarketForBitcoin.com

  • BTC

    (USD 35,680.44)

  • ETH

    (USD 1,219.02)

  • XRP

    (USD 0.28)

  • BCH

    (USD 478.71)

  • EOS

    (USD 2.75)

  • LTC

    (USD 141.87)

  • XMR

    (USD 155.35)

  • TRX

    (USD 0.03)

  • USDT

    (USD 1.00)

  • BNB

    (USD 42.58)

  • BTG

    (USD 12.45)

  • BCN

    (USD 0.00)

  • BTCP

    (USD 0.11)

  • ZRX

    (USD 0.55)