Crypto-currency data analytics firm Skew said trading volumes of cryptocurrency derivatives hit an all-time high yesterday, According to Amy Finances on Tuesday (March 10). Bitcoin options were valued at $198 million in one day, a record $171.3 million set last month.
The Skew data also showed that the volume of cryptocurrency derivatives, based on Panama-based encryption platform Deribit, continued to dominate, while those of its main rivals, including the institutions of CME and Bakkt, were in tatters. Specifically, Deribit has handled $170 million in total option trading volume, accounting for more than 85 percent of the global market.
Derivatives market researchers from Skew also recorded trading on exchanges such as Bakkt, CME, OKEx and LedgerX.
Bakkt has seen zero trading volumes in the past two weeks, and the ICE-owned cryptocurrency start-up continues to underperform. Bakkt’s last trading day for Bitcoin options was February 27, when fewer than ten lots were traded.
On the other hand, the Bitcoin options offered by Bakkt’s rival, CME Group, are relatively good. CME’s options began trading on January 13 and sold for $2.1 million on Monday.
Since bitcoin hit a high of more than $10,000 in early February, the cryptocurrency has been in a firm downward trend, bringing it to a low of $7,700. Coupled with the twin threats of a coronavirus outbreak and an oil price war, Bitcoin’s price movement struck a big change in its bullish outlook throughout the first quarter, as investors now widely believe the continued decline will widen. The spread of panic has sent trading volumes of cryptocurrency derivatives up.
Futures and options are both ways for investors to bet on bitcoin price trends without actually holding cryptocurrencies, which avoid regulatory and hosting issues. However, futures usually carry a higher risk than options because the only financial liability of an option is the right to pay at the time of purchase. Futures contracts, on the other hand, involve maximizing liability.