The American Securities Commission has not yet legalized operations with exchange-traded funds on Bitcoin. But experts argue that a surge in activity in the cryptocurrency derivatives market is just around the corner. Companies have started en masse to develop trading services that support digital assets. These tools are expected to be in great demand in the near future. After the launch of operations with Bitcoin futures on the LedgerX exchange platform, its trading volume increased 7 times.

Struggle for primacy

Chris Concannon, head of the popular CBOE service, has offered a comprehensive approach to building cryptocurrency tools. Ed Tilly, the exchanges manager, announced his intention to launch index funds and Bitcoin bonds.

Grayscale investments, one of the pillars of the investment market, achieved impressive results in 2017 and intends to repeat this success this year. In early spring, under his auspices, four funds began working at once, supporting work with Ripple, Bitcoin Cash, Litecoin and Ether.

The TrueEx marketplace prepares to place Bitcoin swaps. The corresponding permission has already been received. At this stage, the service is working on launching a regulated derivatives market linked to Ether. Plans are underway to develop an infrastructure to facilitate the adoption of virtual currencies by venture capitalists.

Goldman Sachs entered into an agreement with an expert in cryptocurrency derivatives to find out the wishes of potential clients.

How the market will change with the advent of Bitcoin derivatives

Alexey Kiriyenko, the founder of the EXANTE investment fund, believes that the legalization of Bitcoin derivatives by regulators will help increase the trading volume of the global market from 400 billion to 2 trillion in a few years. dollars. The use of innovative tools will fundamentally change the field of finance. There are at least two reasons for such a radical market change:

The launch of derivatives increases the trading volume and market liquidity. The administration of the CBOE exchange intends to use, in addition to derivatives for Bitcoin, derivatives of Ether and Litecoin. Already today you can replenish your deposit account using Zero Cash coins. The services management expects that raising the awareness of institutional investors will increase the demand for Bitcoin and the recognition of other digital assets. Today, the lions share of attention goes to Bitcoin, which can be clearly seen by analyzing the trading volume of the largest trading services. When the capitalization of digital gold exceeded $ 8 billion, Ethereum had a similar indicator by 70%, and Ripples share was half a billion dollars. Derivatives will introduce venture capitalists to different altcoins, and a steady flow of investments will help to cope with the increased volatility of the first cryptocurrency peers.
The emergence of derivatives for virtual currencies will raise the issue of regulating the digital market. Major cryptocurrency exchanges declare their readiness to develop a unified legislative framework.
Finally, the emergence of new instruments in the traditional sphere of finance based on cryptocurrencies will accelerate the process of their adoption by the officialdom, and it is quite possible that it will help to cope with exchange rate volatility.