Skew: Bitcoin options are maturing much faster than the futures markets launched in December 2017
According to Skew, Bitcoin options trading is becoming more popular in the market than futures or swaps.
Options are starting to play catch up with the more mature futures market pic.twitter.com/I2qdBEA9Ii
— skew (@skewdotcom) June 5, 2020
The Bitcoin options are maturing much faster than the futures markets
As the popularity of cryptocurrencies increases in the trading industry, Bitcoin option trading is attracting a significant number of investors and other market participants. Despite not being on the market for so long compared to the traditional stock market, Bitcoin was able to move from a conventional asset to a heavily traded asset, with institutional players showing their interest.
Meanwhile, Bitcoin options trading is growing at a faster pace than future markets and swaps. However, because the cryptocurrency industry and blockchain industry may be at an early stage of mass adoption, Bitcoin options trading has a long way to go.
Bitcoin options trading has seen its regulation streamlined in significant markets like in the United States, whereby it was made legal through the approval from the Commodity Futures Trading Commission (CFTC).
LedgerX CEO Paul Chou stated:
“A U.S. federally-regulated venue for derivative contracts settling in digital currencies opens the market to a much larger customer base.”
BTC futures data (aggregated open interest) Source: Skew.com
The growing trend in Bitcoin options trading is underpinned by support from the Chicago Mercantile Exchange (CME), which has been providing the service for the past few years.
The transactions provided by Bakkt mainly supports the continuous growth in Bitcoin options trading. Bakkt is primarily supported by its parent company, Intercontinental Exchange, thus making it a significant player in the cryptocurrency industry.
Mostly, the level of transparency and market certainty has helped investors continue to move their money into the Bitcoin option. Therefore, making the industry grow exponentially despite the ongoing coronavirus market disruption.
You can also check Bitcoin Price here.
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