Coinbase recently considered buying FTX Europe, highlighting the growing significance of crypto derivatives in global trading strategies.
In the crypto trading space, derivatives have grown in significance, outpacing the popularity of spot trading. This trend is demonstrated by Coinbase’s recent interest in acquiring FTX Europe on Sept. 22, further underlining the expanding role of derivatives in global crypto trading strategies.
Derivatives, which are intricate financial instruments taking their value from underlying assets like Bitcoin and Ether, have become the powerhouse in the crypto trade. Data from Kaiko Research highlights that in the second quarter of 2023, derivatives volume was a staggering six times more than spot volume. While spot trading centers on an asset’s current price, derivatives have been capturing the limelight.
Coinbase looks to Asia
The U.S. remains an uncertain terrain for derivatives, mainly due to regulatory constraints. This has prompted major U.S. entities like Coinbase and Gemini to pivot towards Asian markets by setting up offshore exchanges.
Interestingly, Coinbase secured the green light in August to introduce crypto futures, a subset of derivatives, to its U.S. clientele. This development indicates a future expansion in the coming weeks.
FTX Europe, prior to its
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Author: Bralon Hill
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