Digital assets have been on the move recently with moves identical to Gold, indicating an increasing interest of institutional investors in cryptocurrencies. The combined effect of institutional money flow, aggressive retail buying and speculative interest has led Bitcoin to a two year high as it trades around $11,600 at the time of writing.

As is the case, other cryptos followed suit with impressive gains. Open Interest in the second biggest crypto, Ethereum, hit a New All-Time High of $1.5 billion in the Futures market. Derivatives have paved the way for a robust inclusion of a broad spectrum of investors and in some ways is acting as Crypto’s new growth engine (infographic above).

Derivatives are especially useful since they offer a unique opportunity for traders to profit from in this space by employing leverage and long/short strategies for individual cryptos. For institutional investors, they offer risk management potential. As you can see in the chart, Asia is emerging as the global hub for Crypto derivatives.

Originally Published on Medium

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