2020 will be the year of Derivatives — 2019 Cryptocurrency Derivatives Exchange Industry Annual Report

TokenInsight has just released its Cryptocurrency Derivatives Exchange Industry Annual Report to give you every important detail you need to know in the cryptocurrency derivatives trading industry in 2019.

Key Points:

(1)Futures in 2019: Cryptocurrency’s trading new era achieved a leap forward from billions of monthly trading to tens of billions in USD

(2)$3 trillion in derivatives trading throughout the year

(3) $8.50 billion daily average derivatives trading volume

(4)1/5 Annual Derivatives Trading Volume / Annual Spot Trading Volume

(5) 85% The sum of the trading volume of the top three futures exchanges accounts for the entire market

(6) 0.04% 2019 Q4 Bakkt trading volume compared with BitMEX XBT / USDT contract

(7) Twice It is expected that the total volume of futures trading will reach more than twice the spot trading volume in 2020

(8)From a market perspective, on the one hand, the rise in Bitcoin value has added a strong positive sentiment to the market, and on the other hand, the actual use cases realisation ability has continued to increase. In the second half of 2019, the total market trading volume of derivatives in the second half of 2019 was nearly double that of the first half.

(9) The cryptocurrency derivatives product market is becoming more diversified, and perpetual futures contracts are the mainstream; however, the market trading fees cannot meet the institution’s trading expectations, and those be the first to reduce fees will be favored by the institutions in the future.

(10)Options contracts are gradually emerging in 2019; according to the analysis of trading rules, this type of contract can bring continuous and stable income to the exchange, and options contracts will acquire a larger market share in 2020. In addition, American options are more align with the current investor interests, but no such products are available in the market; American options are the next puzzle in cryptocurrency trading.

(11)In terms of the compliance, the SEC’s approval of the STONE RIDGE TRUST VI fund shows that policymakers are inclined to derivatives. However, currently there is only one exchange that meets the criteria described in the fund’s declaration; exchange compliance is an important prerequisite for institutional investors to enter.

(12) In addition, the SEC believes that ETFs will expose assets to markets that are easily “manipulated.” Data shows that the current compliance trading volume ratio of cryptocurrency derivatives are between 1.2% and 5.4%; if this number is improved, ETF products may be launched in 2020. The market gap for this type of product is now filled by the five index contracts on the FTX.

(13)User activity data shows that if the downward trend in the spot market continues, the derivatives industry will receive more attention.

See the full report: English | Vietnamese (Tiếng Việt)

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