If you are a cryptocurrency investor, you must be well aware of the downfall faced by the crypto industry in the past few months. Top cryptocurrencies such as Bitcoin and Ethereum witnessed a major downfall in the past two months and touched their all-time lows. But the last couple of weeks have turned out to be amazing for these cryptocurrencies. A significant increase in their market prices has been noticed, and along with that, the interest of investors in financial instruments such as options, futures, etc., has also increased.
Excellent growth is expected in 2021
According to the reports, if we talk about the crypto derivatives, it is expected that they will grow at an excellent pace in 2021. It is quite surprising as, despite the regulatory breakdown of FUD, no impact has been seen on the growth pace of these derivatives. The ether options market has also grown to a great extent along with the bitcoin market. In July, the Ether options market went from $2.42 billion to $4.26 billion, its two-month high. According to the provided data, if we talk about the year-on-year growth, it is around 846%, which is quite incredible.
The major point to consider is that the crypto derivatives market is in its initial stage of development and still has such a massive growth rate. Most of the top international banks have also given signs that they are planning to make bigger investments in the cryptocurrency market, which is another indicator that the cryptocurrency market will expand further in the next few years.
Regulatory organizations are getting against derivatives.
It is irrefutable that the crypto derivatives market is on the rise. Still, most of the regulatory authorities are against these financial instruments, and some have even imposed restrictions on the actions of these derivatives. Most of them have issued warnings about these financial instruments and have asked the customers to stay careful. One of the biggest global cryptocurrency exchanges has recently announced that they are closing the derivatives trading service in the whole region of Europe. It has also limited the option of derivative trading for the users living in Hong Kong.
However, it is impossible to deny the massive growth of the derivatives market. It is also true that as the liquidity will improve, the crypto derivatives market will also grow rapidly. It is the primary reason that the crypto derivatives market is showing such massive growth.