Cryptocurrency derivatives market shows growth despite regulatory FUD
The cryptocurrency derivatives market will continue to flourish in 2021 despite the regulatory crackdown on the sub-ecosystem. The cryptocurrency market has successfully rebounded from the two-month slump it had gone into from late May to the end of July. Bitcoin (BTC) and Ethereum (ETH) have been leading the charge, posting impressive gains over the last two weeks. The market is seeing price levels that it had reached back in May of this year.Along with the price gains, the cryptocurrency derivatives market that includes financial instruments like futures, options and even micro futures....
Related News
The US Securities and Exchange Commission (SEC) will enhance the regulatory framework for derivatives use by registered investment companies after passing a vote to either change or amend existing rules. As part of the new framework–which covers mutual funds, exchange-traded funds (ETFs), and closed-end funds–operators must undertake to implement a written derivatives risk management program. A Modern Approach to Derivatives Regulation The rule changes, which open the doors for more leveraged ETFs, will also permit a fund to enter into reverse repurchase agreements and similar....
For years, the cryptocurrency industry has had a complicated relationship with regulators. An example of regulatory pushback within the crypto space was when Facebook-backed Diem tried to launch its stablecoin. Regulatory limitations have undoubtedly had an impact on derivative brokers and exchanges. Just recently, Binance, one of the biggest exchanges, was forced to shut down crypto derivatives in several countries, including Germany, Italy, and Hong Kong. Since this announcement, derivatives traders have been on edge about what this means for the derivatives market and, most importantly,....
We already know of bitcoin's complicated relationship with governments and regulatory agencies the world over. But bitcoin's relationship with the US Commodity Futures Trading Commission (CFTC), the agency responsible for regulating the futures and options markets, is particularly ill-defined. Bitcoin is in a Catch-22-style bind. As long as the price remains volatile it will remain dangerous for merchants to accept the cryptocurrency, barring adoption on a massive scale. Derivatives might be a useful risk management tool to hedge against volatility. But regulatory ambivalence leaves....
Crypto derivatives showed enormous growth in 2020 as nearly $2 billion worth of BTC options expired on Christmas day. 2020 was the most important year for the crypto derivatives market so far. Both Bitcoin (BTC) and Ether (ETH) derivatives steadily grew throughout the year, with their futures and options products available across exchanges such as the Chicago Mercantile Exchange, OKEx, Deribit and Binance. On Dec. 31, Bitcoin options open interest reached an all-time high of $6.8 billion, which is three times the OI seen 100 days before that, signifying the speed at which the crypto....
CME Group chair and CEO Terry Duffy said the investment and partnership would help the company "transform derivatives markets through technology, expanding access and creating efficiencies for all market participants." Google’s parent company Alphabet has made a $1 billion equity investment in the Chicago Mercantile Exchange Group, the exchange responsible for many crypto derivatives products.In a Thursday notice to investors, the CME Group announced the $1 billion investment from Alphabet in addition to a 10-year strategic partnership with Google Cloud aimed at accelerating the exchange’s....