Record-Breaking Week for Crypto Derivatives as Trading Volumes Skyrocket
Summary:
Crypto derivatives' daily trading volumes reached record highs this week on several exchanges, including Deribit and Coinbase Institutional. Deribit hit a 24-hour trading volume of $12.4 billion and an open interest of $29 billion, while also reporting that client assets reached $4 billion. Coinbase Institutional had its second-best-ever trading day with $380 million volume in Bitcoin and Ether contracts. Additionally, end-users' activity and options volume increased. The expiration of substantial BTC and ETH options contracts is also noted. Despite significant outflows from Grayscale’s ETF, spot Bitcoin ETFs saw several record trading volume days.
Crypto derivatives such as options and futures have recently experienced a substantial increase in their daily trading volumes, with multiple exchanges hitting unprecedented levels. Deribit, a prominent crypto derivatives exchange, noted in a post dated February 29 that the 24-hour trading volume on that specific day reached an extraordinary high of $12.4 billion. Moreover, the platform's open interest - outstanding derivatives contracts yet to be closed or settled - peaked at over $29 billion, marking another record. Additionally, client assets hosted on Deribit climaxed at $4 billion.
In a similar move, Coinbase Institutional reported that its futures exchange, regulated in the United States, saw the second-largest trading day in its history on February 29, with a notional volume of $380 million being traded in Bitcoin (BTC) and Ether (ETH) contracts. This was split amongst a record 850 individual end-users. The Greeks Live, a platform for professional options traders, also reported a historic trading volume of $620 million in options over 24 hours.
Greeks Live made mention on March 1 that spot Bitcoin exchange-traded funds (ETFs) in the United States were steering the bull market, reaching record breaking volumes as Bitcoin's value peaked at $64,000. However, options volumes were mildly rising, suggesting a well-structured and solid inflow of capital into the market.
Every Friday marks the expiration day for crypto options. Deribit mentioned that about 32,000 BTC options with a notional value of $1.9 billion were set to expire on March 1, along with 235,000 ETH options contracts bearing a notional value of $793 million.
Spot Bitcoin ETFs had a highly profitable week, achieving several record trading volume days with over $2 billion. However, an approximately $600 million outflow from Grayscale’s ETF on February 29 brought the total inflow for all ten ETFs down to $93.8 million - the lowest it's been since February 6. Data from Farside Investors suggests that inflows to BlackRock’s Bitcoin fund hit $604 million on February 29, even outdoing Grayscale’s net outflows and securing the most inflows for a single day when compared to all other ETFs.
Published At
3/1/2024 9:13:46 AM
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