Financial Times: Cryptocurrency trading platforms expand into derivatives to attract cautious investors

On October 28, according to the Financial Times, cryptocurrency trading platforms are rapidly expanding into the derivatives field, hoping that stricter regulations and promises of high leverage returns will attract cautious investors to the market.

According to the latest data, cryptocurrency derivatives trading accounts for 71% of the total trading volume of digital assets, and the total amount of open interest has exceeded $40 billion for the first time, showing the dominant position of the derivatives market. Market leader CME Group has set new records in trading volume and open positions this year, and is actively expanding its product line. The newly launched bitcoin futures contract on Friday is specifically designed to match the New York trading cycle, further meeting the needs of institutional investors.

The derivatives track is attracting a large number of new players. Dutch cryptocurrency derivatives exchange D2X will launch in November, and One Trading and GFO-X in London plan to open in early 2025. In addition, Kraken has established a trading platform in Bermuda this month, directly competing with CME Group, Binance, and Bybit.

Jason Urban, global trading director of Galaxy Digital, pointed out that after cryptocurrency lending institutions such as FTX collapsed, unsecured lending business basically disappeared from the ecosystem, and investors turned to the derivatives market to seek leverage opportunities.