The last five years have been a test phase for bitcoin derivatives, which began tentatively when Bitmex eased into life in 2014. Now, as the cryptoconomy prepares to enter a new decade, derivatives products will play a pivotal role in price discovery. 2020 will be a big year for bitcoin and for the futures markets where billions of dollars will be won and lost, and the next bull market will begin.
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A Year of Bitcoin Derivatives Is Dawning
In 2019, crypto futures volumes approached those of spot trading. In 2020, futures are on course to blow right past spot levels and keep on trucking. The success of derivatives platforms Binance Futures and Bitmex, as well as new products from the likes of FTX, Dydx, and Synthetix, has convinced many that 2020 could be the Year of Derivatives. And U.S. regulators are lending credence to the notion: Commodities and Futures Trading Commission (CFTC), the independent regulator that governs the country’s futures and options markets, recently hinted that it could approve a new crypto-based derivative product backed by Ethereum in the course of 2020.
Out-of-the-box products serve to attract new players and new capital to the crypto derivatives market. But will the spate of novel products capture sufficient volume and play a role in shaping bitcoin’s price action in the coming year? And if so, who stands to benefit most?
A Flurry of Derivatives Developments
Singapore exchange Bybit is planning to move into Thai, Turkish, Vietnamese and Spanish markets, Okex’s new USDT-margined Perpetual Swap Trading is likely to gain traction, and decentralized derivatives products are expected to see broader usage as
