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Cryptocurrency Derivatives Series: Mounting Crypto-Derivatives Sentiments In 2019

Of late, Bitcoin derivatives trading has received myriad interests driven by the underlying constructive news following the spike in Bitcoin’s price.

Well, as per the twitter source, Bitcoin’s new volume persuaded the futures market, CME bitcoin futures observe massive growth of 63.5k contracts traded during last week. On the other hand, CBOE, ahead of bitcoin’s stern bull run, announced to halt its bitcoin futures. The underlying price of bitcoin futures has recently regained the momentum to hit back above $5.25k and signaling the upside momentum on the ascending price curve. 

Notably, The resurgence in the recent past has prompted futures contract at CME Group Inc showing emerging prospects. 

While the much-awaited budding venture of ICE is all set to go live. Well, its launch time for Bakkt’s physically deliverable bitcoin ETF futures is finally here. 

As per the recent announcement of the company, Bakkt has managed to obtain all the approvals requisites from the authorized regulators and is all set to unveil its business on September 23rd. This also means that the company has been able to satisfy the Commodity Futures Trading Commission (CFTC) h which was one of the biggest challenges for the company to overcome for its physically delivered futures.

With approval by the New York State Department of Financial Services to create Bakkt Trust Company, a qualified custodian, the Bakkt Warehouse will custody bitcoin for physically delivered futures. This offers customers unprecedented regulatory clarity and security alongside a regulated, globally accessible exchange in a market underserved by institutional-grade infrastructure.

Nelson Minier, head of OTC (over-the-counter) desk, trading at major cryptocurrency platform Kraken, has stated that the OTC desk’s trading volumes have increased by 20x times since the beginning of last year.

Minier made his remarks that “Bitcoin and Ether are the big the whales of our desk,” additionally estimating that Bitcoin (BTC), Ether (ETH), Bitcoin Cash (BCH), Monero (XMR), and Tether (USDT) were the top five cryptocurrencies traded by volume.

Tom Lee, who is the Fundstrat Global Advisors co-founder perceives the recent interest rate cuts by the Federal Reserve are a constructive driving force for the Bitcoin’s prospects, as per the sources.

Well, Lee remarked as to how the rate cuts can constructively impact Bitcoin investment in an interview with Fox Business on July 31st, stating that: “Bitcoin’s becoming increasingly a macro-hedge for investors against things that could go wrong. Rate cuts are adding liquidity. Liquidity is pushing money into all these risk assets and also hedges, which is helping Bitcoin.”

Overall, Crypto-derivatives are making buzz from the recent past, which is why it’s perceived as a catalyst of the bullish prospect.

By Niranjan Patil
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