According to the latest research of Arcane Research, an analytics platform, the crypto derivatives exchange, Deribit dwarfed the trading volumes in terms of BTC options of CME and Bakkt. Regardless of the success of both the platforms, Deribit conquers the significant volume of options trading.
Undoubtedly, the marketplace for cryptocurrencies’ derivatives is expanding. The market is extensively dominated by unregulated players against the regulated options offering company like CME Group and Bakkt. The recent study highlights the preference of unregulated exchanges in the cryptocurrency marketplace.
Deribit takes the cake from CME and Bakkt
In the last week of January, the volume of Bitcoin option rose around $90million, and the opening week of February noticed the volume to reach almost $150 million. Amongst the trading volume, Deribit is growing as a popular choice, conquering over 80% of total volume.
History of CME and Bakkt
CME Group opportunely launched the Bitcoin options trading on its derivatives exchange. It facilitates investors to speculate on the price of dominating cryptocurrency. While the rival platform Bakkt, which is owned by Intercontinental Exchange, launched its options and cash-settled contracts in December 2019.
Bitcoin options were traded extensively on Bakkt and CME though CME outshines the Bakkt. The volume traded by CME was 55 contracts with almost $2.1 million worth of Bitcoins while Bakkt had $1.15 million worth of options trading. Though the groups experienced immense popularity, recently the Deribit overpowered them.
Increased interest in Futures Market
Recently, the Deribit Exchange announced the launch of Bitcoin Daily Options with a BTC Contract set to expire every day of the year. Though the unregulated platforms are gaining popularity in terms of BTC trade volume but the Chairman of the Commodities and Futures Trading Commission, Heath Tarbert was optimistic about regulated derivatives in cryptomarket. He saw the increased volume of bitcoin options trading as an opportunity for future markets to grow, ignoring the fact of unregulated exchanges. Though CME, Bakkt and Deribit are different venues all, contribute to the ecosystem of Bitcoin.