Crypto Derivatives - Part III
Institutional-Grade Technology Comes to Bitcoin
Abstract
We have just published the third and final report in our series looking at crypto derivatives. This represents an enormous opportunity as cryptocurrencies, particularly bitcoin, begin their journey of attracting institutional capital and gaining mainstream adoption.
In the series of reports, we have explored the blockchain-native metrics which are being used to develop new derivative products to help market participants hedge risk—particularly regarding the “Bitcoin Halving” which is anticipated in May 2020.
We have also explored the product and market structure innovation by the unregulated peer-to-peer crypto derivatives exchanges, particularly BitMEX which pioneered the perpetual swap. This product has been integrated into the offerings of many competing exchanges due to its high liquidity and popularity with traders globally.
"Bitcoin's spot market is likely to remain fragmented with lingering concerns regarding market manipulation. Therefore, physically settled bitcoin futures contracts are a hugely important milestone in the development of bitcoin. The market for crypto derivatives promises to be one of the largest and most innovative areas of this new asset class," says John Dwyer, Celent's Digital Assets Research Lead.