Crypto derivatives trading volumes soar as Deribit hits all-time highs, Coinbase reports second-best day, and Greeks Live sees historic options volume. Bitcoin payments' comeback discussed.
Throughout this week, there has been a remarkable surge in daily trading volumes for cryptocurrency derivatives, particularly options and futures, setting new records across various exchanges.
In a recent announcement on Feb. 29, Deribit, the crypto derivatives exchange, disclosed that its 24-hour trading volume had skyrocketed to an unprecedented $12.4 billion, marking a significant milestone for the platform. Concurrently, the open interest, indicating the number of derivatives contracts awaiting closure or settlement, surpassed $29 billion, reaching yet another all-time high. The platform also highlighted the remarkable growth in client assets, which soared to $4 billion.
On the following day, March 1, Coinbase Institutional reported a remarkable performance for its United States-regulated futures exchange, achieving its second-highest trading volume ever. With $380 million in notional volume traded in Bitcoin (BTC) and Ether (ETH) contracts, the exchange catered to a record-breaking 850 unique end-users on Feb. 29.
The Greeks Live, a leading professional options trader's platform, also witnessed a historic surge in options trading volume, hitting an impressive $620 million within a span of 24 hours.
Furthermore, Greeks Live highlighted the pivotal role of U.S. spot Bitcoin exchange-traded funds (ETFs) in propelling the spot bull market, which experienced unprecedented volumes as Bitcoin's price surged to as high as $64,000.
Despite the robust performance in options volume positions, there's a modest rise, with solid inflows contributing to a healthy market structure, as noted by Greeks Live.
It's worth noting that every Friday marks crypto options expiry day, and Deribit reported a substantial number of expiring contracts on March 1. Approximately 32,000 BTC options, with a notional value of $1.9 billion, are set to expire, along with around 235,000 ETH options contracts valued at $793 million.
Spot Bitcoin ETFs also witnessed a robust week, registering several days of record trading volumes exceeding $2 billion.
However, the cryptocurrency market saw a near $600 million outflow from Grayscale's ETF on Feb. 29, resulting in the net inflow for all ten ETFs dropping to $93.8 million — the lowest level since Feb. 6, according to preliminary data from Farside Investors.
Contrastingly, BlackRock's Bitcoin fund experienced a substantial net inflow of $604 million on Feb. 29, surpassing Grayscale's net outflows and outpacing the combined inflows of all other ETFs for the day.
In conclusion, amidst dynamic market fluctuations, the cryptocurrency landscape continues to evolve, presenting both challenges and opportunities. As Bitcoin payments strive to stage a comeback, market participants remain vigilant, navigating through the complexities of this burgeoning industry.