The United States Bitcoin (BTC) derivatives market witnessed a slew of developments in 2019 as “old players” set trading volume records and “new players” introduced novel market products. After months of regulatory maneuvering, Bakkt finally launched and has gone on to post record Bitcoin futures trading volumes.
Several platforms have also obtained Swap Execution Facility licenses from the U.S. Commodity Futures Trading Commission as the crypto derivatives arena in the country expanded throughout 2019. One of the 19 CFTC-licensed platforms, Tassat, said the approval is a preliminary step to the company listing physically settled Bitcoin derivatives for institutional clients.
Overall, 2019 saw the emergence of the Bitcoin derivatives market transitioning from a corner of the broader crypto trading landscape to taking a more significant place within the industry as a whole. With the U.S. Securities and Exchange Commission refusing to approve any Bitcoin exchange-traded funds, Bitcoin derivatives seen to have become a firm favorite for institutional crypto traders, at least in the U.S.
Outside the country, the crypto derivatives bug appears to be spreading, with nations like Singapore taking definitive steps to regulate the market adequately. However, in the U.K., financial regulators are reportedly planning to issue a ban on crypto derivatives, citing customer protection concerns. The U.K. government says it will not interfere in the decision, and several industry stakeholders have called on authorities not to go ahead with the planned prohibition.
Topic: How Do You Think About Bitcoin Derivatives? (Read 209 times)
More and more derivatives exchanges came out. As I see, bitcoin derivatives are the improvement and development of the bitcoin market.
I used to think the same, that the derivatives exchanges were beneficial for bitcoin. Now i think not so much. These derivative exchanges just create an investment market parallel to the bitcoin market, not in it. If the investment or exchange isn't hitting the blockchain, it's not influencing bitcoin. It's like a bunch of rich people that don't want to touch bitcoin have decided to make some side bets on its price...like a friday night parlour trick, entertainment on boys night out, etc. They don't take bitcoin seriously, they just want something new to bet with their "play money".
Let's not give too much credit to the derivative exchanges until they start interacting with the blockchain.
I appereaset with you, Im also belive that It will be take a potential market and maintain derivatives as per previous.
OP, people into derivatives investing might get the point of investing for fiat, but they miss the true point of Bitcoin. True HODLING is more than investing in my opinion.
Plus franky1, what are your thoughts about ETFs, or other derivatives, and Bitcoins held by custodians? I believe if enough coins are in "their" control, Bitcoin could fail.
Plus franky1, what are your thoughts about ETFs, or other derivatives, and Bitcoins held by custodians? I believe if enough coins are in "their" control, Bitcoin could fail.
if your not holding a bitcoin private key with coins associated to the keypair. you dont own bitcoin
if you own ETF shares and other derivatives you definetly dont own bitcoin.
if you want to play with shares and derivatives go play at a horse, greyhound race track, or play with fiat derivatives because they are the same thing
the only thing they can help with is small grabs of initial trust hoarding of these institutions but not the day to day movements of the actual bitcoin price
take bakkt for instance. they are only hoarding ~1000 coin and that purchase was months ago. now bakkt customers are just gambling fiat against an index of some website. not actually touching bitcoin
alot of people hope that when more companies set up ETF's they will go on huge buy up's of lots of coins. but most institutions will only be buying up 5-10 coins at a time and mostly using institutions who privately sell them between each other on OT not on the public exchanges.
so dont expect the ETF markets to prop up the price sustainably. just expect more volatile waves
if you own ETF shares and other derivatives you definetly dont own bitcoin.
if you want to play with shares and derivatives go play at a horse, greyhound race track, or play with fiat derivatives because they are the same thing
the only thing they can help with is small grabs of initial trust hoarding of these institutions but not the day to day movements of the actual bitcoin price
take bakkt for instance. they are only hoarding ~1000 coin and that purchase was months ago. now bakkt customers are just gambling fiat against an index of some website. not actually touching bitcoin
alot of people hope that when more companies set up ETF's they will go on huge buy up's of lots of coins. but most institutions will only be buying up 5-10 coins at a time and mostly using institutions who privately sell them between each other on OT not on the public exchanges.
so dont expect the ETF markets to prop up the price sustainably. just expect more volatile waves
There are advantages in trading with derivative exchanges, and that there is a use from this and the possibility of making a profit. Bitcoin derivatives are a plus to Bitcoin and you need to profit from this trade, an eternal swap on BitMEX.
More and more derivatives exchanges came out. As I see, bitcoin derivatives are the improvement and development of the bitcoin market.
But it still needs some regulated exchanges to perfect the products.
In my opinion, perpetual swap on BitMEX is the best. And options trading and ETF is still a potential market. I trust that BitOffer will achieve it.
But it still needs some regulated exchanges to perfect the products.
In my opinion, perpetual swap on BitMEX is the best. And options trading and ETF is still a potential market. I trust that BitOffer will achieve it.
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