- Crypto derivatives volume reaches a record high of $602 billion in May.
- Crypto derivatives are increasing in popularity among crypto traders.
Crypto derivatives volume reached a new all-time monthly high of $602 billion last month, according to a new report by CryptoCompare. This represents a 32% volume increase in May, far more significant than the 5% volume increase in traditional spot markets. The report also notes that derivatives trading now accounts for 32% of the total market, up from 27% in April.
More importantly, crypto derivatives have seen strong growth throughout 2020. In a report by TokenInsight, crypto derivatives volume in 2020 Q1 alone surpassed $2 trillion. Derivatives volumes are still less than 50% of the spot market, however, derivatives are increasing in popularity among cryptocurrency traders.
Institutional Options Volume Soar
Despite many exchanges beginning to offer derivatives products, the crypto derivatives market is controlled by a small number of cryptocurrency derivatives platforms.
However, volumes and interest via the CME platform have begun to soar. CME is a platform offering both Bitcoin futures and options. During May, the platform saw record levels of open interest as well as substantial growth in trading volume.
The rapid surge in Bitcoin derivatives via CME may represent the growing institutional sentiment around digital assets, and more specifically, Bitcoin.
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