Asian exchanges account for more than 95% of cryptocurrency futures contracts trading volume, according to a new report by Swiss company Blockchain Valley Ventures (BVV).
As BVV states in its report, Asian exchanges account for 95% of cryptocurrency futures trading, while Huobi, Binance and OKEx have surpassed BitMEX to become the leading spot and derivatives markets. At the same time, 83% of the trading volume for cryptocurrency derivatives is carried out on six exchanges, and 95% of futures contracts are in BTC, ETH and EOS.
According to BVV, from Q1 to Q2 2020, the total volume of cryptocurrency derivatives trading increased by $ 60 billion to $ 2.16 trillion. Spot trading volumes fell 18% to $ 5.44 trillion over the same period. BVV predicts that due to differences in derivatives across exchanges, there will be multiple acquisitions or acquisitions in the market over the next few months.
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BVV believes that LedgerX, BitFlyer and ErisX are the most likely targets for acquisitions by the larger companies. Coinbase, Bitstamp, Huobi and Binance are among the most likely buyers in the report. BVV Partner Sebastian Markowsky said:
“Derivatives are an entry into the cryptocurrency market for institutional investors. A player who can enter the US or European market through a regulated platform will receive a large institutional capital. ”
An increase in demand for some derivative products in the Asian market was forecasted last year. In October 2019, the Chicago Mercantile Exchange (CME) announced that demand for options on cryptocurrency futures would be high among traders and miners from Asia.
