One month has passed since the 2020 Bitcoin (BTC) miner reward halving, and a lot has happened for the predominant cryptocurrency since then. From changes in investor and trader behavior to an exponential growth in institutional interest, the halving seems to have marked the start of a new reality for all Bitcoin market participants. Although the halving did not come with the immediate price surge that many had associated with the event, there are a few key factors that indicate the start of some changes that may be here to stay, some of which may even be pivotal for the …

Qiao Wang — Investor, analyst and head of product at crypto market data firm Messari — raised major criticism about the way in which the Grayscale Bitcoin Trust, or GBTC, is set up. In a June 11 tweet, Wang cites Grayscale’s official website, according to which “Grayscale Bitcoin Trust does not currently operate a redemption program and may halt creations from time to time.” He suggested that the absence of a redemption mechanism can result in GBTC trading at a discount compared to the net asset value, or NAV, of the fund’s assets. “You are just donating your money to …

Crypto derivatives volumes have hit a new record high in May 2020. The early generation of crypto investors mostly worked with a hold-and-sell perspective. With the inevitable evolution of the market and the advent of cryptocurrency derivatives, investors with varied agendas — such as the desire to trade Bitcoin (BTC) volatility in both directions, hedging against major market movements, mitigating risks, etc. — began to flock to this asset class. Derivatives are complex financial instruments that enable these agendas but often prove to be overwhelming for inexperienced and uninitiated investors to manage. As derivatives are pegged to an alternative asset …

The crypto derivatives monthly volume increased by one third in May to hit a new all-time high of $602 billion, according to United Kingdom-based data aggregator CryptoCompare. The new record is just a shade past the previous one of $600 billion, registered in March. However, derivatives are becoming ever more popular and now account for 32% of the crypto market — up from 27% in April. In percentage terms, the monthly volume increase in May for derivatives was six times larger than the increase in spot volumes, which was up 5% to $1.27 trillion. Huobi, OKEx and Binance accounted for …

Cryptocurrency exchange OKEx announced the launch of Ether (ETH) options contracts on its trading platform. According to a June 4 announcement, following today’s launch of ETH options, OKEx will also launch EOS options contracts on June 18. The firm also announced that it placed 1,000 ETH in the ETH Options insurance fund to prevent clawback. OKEx promotes options as a trading risk hedge Per the announcement, options allow traders to buy or sell the underlying asset to hedge risk and maximize profits. The announcement explains how the contract differs from futures: “Different from futures, holders don’t have to buy or …

The price of Bitcoin (BTC) suddenly dropped from $10,000 to $8,600 on BitMEX as nearly $140 million worth of long contracts were liquidated. The pullback came merely 16 hours after BTC surged to $10,473, testing the dreaded $10,500 resistance level. Bitcoin typically sees a heightened level of volatility when it approaches key dates. Crucial periods in the cryptocurrency market include CME futures expirations and the closure of a weekly or monthly candle. The 14% price plunge, which happened within merely five minutes, occurred without any futures or options expiration dates on the horizon. Cryptocurrency trader Hsaka emphasized the abrupt spike …

Crypto derivatives exchange Delta Exchange has announced a new injection of funding from blockchain investor CoinFund, aiming to provide strategic resources for both parties in their focus to expand in India. According to the announcement, New York-based firm CoinFund looks forward to implementing its first venture investment in India following the recent lifting of the Reserve Bank of India’s ban on banks serving crypto-related firms. Big opportunities in the Indian crypto derivatives market Speaking to Cointelegraph, Alex Felix, managing partner of CoinFund, said: “The crypto market opportunity in India is big! The combination of the Supreme Court’s decision to invalidate …

Chicago Mercantile Exchange's, or CME, global head of equity index and alternative investment products, Tim McCourt, said traders prefer cash-settled Bitcoin trading over products backed by physical Bitcoin (BTC). "So far, clients have expressed a clear preference and priority for a cash-settled product," McCourt told Cointelegraph in an email when asked why the CME chose to go the cash-settled route for its Bitcoin futures trading product back in 2017. The CME launched its BTC futures after its price metrics The CME opened Bitcoin futures trading in 2017, based on the exchange's own CF Bitcoin Reference Rate, or BRR, and Bitcoin …

Crypto derivatives platform Deribit is launching a new external custody solution designed to help with faster collateral transfers and reduce auto-deleveraging risks in tumultuous markets. On May 14, the Panama-based exchange announced its full integration of the new solution, which was developed by London-based digital asset infrastructure provider Clearloop. Deribit is catering the new solution to professional traders, claiming that such improvements in the crypto derivatives market structure will drive crypto adoption among institutional investors. How does Clearloop’s custody solution work and what are the implications for traders? The custody solution is designed to remove the need for asset managers …

Pre-halving speculation has driven historic volumes of crypto trade, with April 30 producing the second-strongest single day for volume on record according to a report published by market data aggregator, CryptoCompare. Notional volume for BTC options on Chicago Mercantile Exchange, or CME, also tagged a new record in recent days, with 202 contracts changing hands on May 5. April 30 posts historic volume $66.2 billion worth of crypto assets changed hands on April 30 as Bitcoin (BTC) rallied above $9,000 — comprising the second-largest daily volume behind the $75.9 billion in crypto assets traded during the historic March 13 crash. …

Amid the ongoing coronavirus pandemic, inflation is collapsing all over the world. In order to hedge against the inflation risks, some billionaire investors are buying Bitcoin (BTC). Paul Tudor Jones, the billionaire founder of hedge fund, Tudor Investment Corporation, reportedly revealed that Bitcoin is part of his portfolio. “If I am forced to forecast, my bet is it will be Bitcoin.” According to a May 7 report by Bloomberg, Jones is buying Bitcoin to protect his investments from the inflation coming from the money-printing by central banks. In a market outlook note titled “The Great Monetary Inflation,” the billionaire investor …

The derivatives platform for Bitfinex cryptocurrency exchange is launching a new perpetual swaps product today, May 6, that enables traders to speculate on Bitcoin (BTC) dominance. Dominance, which refers to Bitcoin’s share of the total market capitalization for all cryptocurrencies, is a measure closely eyed by many in the community — whether they be altcoin developers and traders or diehard Bitcoin maximalists. According to data from Coin360, BTC dominance stands at close to 67% as of May 5. Bitfinex Derivatives’ Bitcoin Dominance Perpetual Swap (BTCDOM) is ostensibly the first such contract to launch in the market. The exchange claims it …