Cryptocurrency exchanges are expanding into the derivatives space to attract cautious investors. The Dutch cryptocurrency futures and options trading venue D2X will launch, while One Trading and GFO-X plan to launch early next year. The open interest in cryptocurrency derivatives has surpassed 40 billion for the first time this year. Derivatives offer leverage, appealing to investors looking for ways to gain leverage. Major exchanges in the United States are actively trying to increase trading volumes, and becoming a regulated exchange is important. CME Group has launched new derivatives contracts, with trading volumes and open interest reaching new highs.

Odaily Planet Daily reported that cryptocurrency exchanges are rapidly expanding into the derivatives space, hoping that stricter regulations and the promise of high leveraged returns will attract cautious investors into the market. Next month, the Dutch cryptocurrency futures and options exchange D2X will launch, while London-based One Trading and GFO-X plan to debut early next year. They will join other new derivatives players, such as Kraken, which launched its trading platform in Bermuda this month, attempting to compete for market share with CME Group, Binance, and Bybit.

Data from CCData shows that futures and options trading accounted for 71% of all digital asset trading volume. The open contract positions in crypto derivatives (a measure of market depth) have surpassed $40 billion for the first time this year.

Jason Urban, Global Trading Head at Galaxy Digital, stated, "Derivatives can provide you with leverage." He mentioned that since many cryptocurrency lending institutions have collapsed, "unsecured lending has disappeared from the ecosystem, so people naturally want to find a way to obtain that leverage."

Additionally, Nico Cordeiro, Chief Investment Officer at the U.S. crypto hedge fund Strix Leviathan, remarked that major U.S. exchanges are "actively" trying to increase their trading volumes, requesting calls and showcasing new products and features to traders, noting that "becoming a regulated exchange is a big deal."

Market leader CME Group has seen record trading volumes and open positions this year, leveraging this momentum to launch new derivatives contracts, including Bitcoin futures for Friday, which align with the New York trading week.

Cordeiro stated that the surge in CME's trading volume is because "it is the place where all these highly regulated investment managers can gain exposure," adding that "it is actually the only platform in the U.S. that offers strong capital efficiency." (FT)

Cryptocurrency exchanges expand into the derivatives space to attract cautious investors.