Data Shows Bitcoin Options Markets Are Maturing Faster Than Futures

Data Shows Bitcoin Options Markets Are Maturing Faster Than Futures

By stvleong | Steven Leong | 10 Jun 2020


Data from the crypto analytical company Skew.com indicate that bitcoin options mature much more rapidly than the future markets began in December 2017. Skew's data shows that there has been a large increase in open interest in bitcoin options over the past few months.

According to Skew.com figures, Bitcoin options "are starting to suit the mature futures market." The researchers noted that "Options of open interest [is] fast rising in this section," on 5 June 2020.

For quite some time, Bitcoin future has been around and potential products have entered highly regulated trading platforms such as the Cboe and CME Group back in 2017. Not only are BTC options good, but Skew says that it is "a similar story for ether options."

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Source: BTC options data and chart via Skew.com.

It is relatively easy to grasp the difference between choices and future goods. A CME Group's Bitcoin future contract reflects an agreement to buy or sell the virtually-represented Bitcoins at a "predefined price and deliverable on time."

Options, by comparison, are the right to play without having to purchase or sell the underlying asset.

Bitcoin options markets truly gained solid ground in 2019 and growth is much faster than those for more than two years. News. Bitcoin.com recently recorded that in May, digital asset derivatives volumes were that by 32 percent in a Cryptocompare study.

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BTC futures data (aggregated open interest) chart via Skew.com.

Skew data shared on Twitter shows that Huobi, Okex, Deribit and Bitmex are the best choices and potential platforms besides controlled exchanges like the CME Community.

Since the market rout on the 12th of March, also known as the Black Thursday, there has been significant demand for bitcoin futures and options contracts. Skew explained on Tuesday that "June started with a softer note from a trading point of view, as bitcoin remained just shy of $10K."

In addition, the Skew researchers noted that growth in tether (USDT) was also exponential. "The USDT market cap is rising to 10 billion dollars," said analysts on Tuesday.

The total number of outstanding derivatives contracts (open interest) continues to rise as regulated future and option products of the CME Group. At the time of the press, all 5,000 + crypto coins are worth around $276 billion.

The two cryptocurrencies with several options and futures, bitcoin (BTC) and ethereum (ETH), are up some percentages on Tuesday. In addition , the study of Skew reveals that bitcoin options worth more than $800 million will expire.

 

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stvleong
stvleong

I'm a Digital Marketing Lead | Crypto Trader | Affiliate Marketer and love to write posts related to crypto and anything that is interesting.


Steven Leong
Steven Leong

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