Saturday, May 31, 2025
  • Home
  • Crypto
  • DEFI
  • NFT
  • Press Release
  • Contact Us
No Result
View All Result
No Result
View All Result

Deribit Hits Landmark Bitcoin Open Interest, CME Plays Catch Up

April King by April King
May 20, 2020
in Price Analysis
0
Deribit Hits Landmark Bitcoin Open Interest, CME Plays Catch Up

Deribit continues to attract retail investors and small funds. But as institutional interest picks up, CME could make up the lost ground.

Share this article

You might also like

Ton Boost Launches Innovative Mine-to-Earn App on Telegram to Enhance User Engagement and Participation

Ethermine Accepts Mystery $2.5 Million Dollar Ethereum Transaction Fee

Those Million Dollar Ethereum Transactions? Could Be a Hacked Exchange

Deribit’s Bitcoin options surged past 100,000 BTC of open interest. But as CME catches up, recording a 13x increase in open interest during May 2020, is Deribit’s position as the market leader in danger?
The Crypto Options Race
Deribit is the most liquid options market in all of crypto, attracting both retail and institutional investors. 
Yesterday, the exchange crossed the 100,000 BTC threshold in open interest with over 10,000 BTC in daily trading volume.
Source: SkewThe dominance of Deribit in the crypto options market has been longstanding. Still, the exchange’s place as the venue of choice for institutions could be imperiled as CME’s open interest increased from $13 million to $175 million this month.
Source: SkewSignificant hedge funds like Rentech and Tudor Investment Corp that added Bitcoin derivatives to their investment mandates chose CME for the platform’s reputation.
Retail investors are the minority in the Bitcoin options market. If CME options continue to gain traction, Deribit could lose significant market share as institutions move to the former.
Deribit’s saving grace in this regard is the onerous capital requirement to trade CME’s Bitcoin options.
Each option contract on Deribit represents one BTC, while each CME contract is five BTC or around $50,000 at the time of press.

According to Su Zhu and Hasu, authors of Deribit Insights, one must have an initial margin of 40% to trade CME options. This is capital inefficient as it requires the trader to keep a large portion of their trading account dormant. 
Further, trading is only available from Monday to Friday, as opposed to Deribit, which is open 24×7.
Institutional liquidity in options may be rising, but CME is the platform of choice only for large funds. Smaller hedge funds and traders, however, will find the capital efficiency and accessibility to be Deribit’s trump card over CME.

Share this article

The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.
You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.
See full terms and conditions.

Post Views: 209
Previous Post

The Future of Lightning Plugins Is Bright – Bitcoin Magazine

Next Post

J.K Rowling Probably Won’t Be ‘Joining The Bitcoin Community’ Anytime Soon ⋆ ZyCrypto

April King

April King

I have been a full-time professional writer for over 10 years, and have written for some of the biggest publications in the world. My work revolves around cryptocurrencies and blockchain technology, and I am widely considered to be one of the leading experts in these fields.I have written two books on the subject matter, and my articles have been featured in major news outlets such as The Wall Street Journal, Forbes, and Huffington Post. In addition to writing, I also give talks and seminars on cryptocurrency investing, and am a regular commentator on CNBC, Bloomberg, and other financial news networks.

Next Post
J.K. Rowling Is Interested In Bitcoin, How Will This Influence The Digital Asset?

J.K Rowling Probably Won't Be 'Joining The Bitcoin Community' Anytime Soon ⋆ ZyCrypto

  • Why must you pick a white label crypto exchange solution than developing a new one?
    Why must you pick a white label crypto exchange solution than developing a new one?
  • Bitcoin Product Demos During the Halving – Bitcoin Magazine
    Bitcoin Product Demos During the Halving – Bitcoin Magazine
  • Whitelabel Cryptocurrency Exchange platform and it’s 4 salient features!
    Whitelabel Cryptocurrency Exchange platform and it’s 4 salient features!
  • Despite Chaos, The Next BTC Price Rally Could Be Spurred By This Little-Known Bitcoin Indicator
    Crypto Pundit reveals what will likely ignite another parabolic Bitcoin Rally ⋆ ZyCrypto
  • Which is Best Crypto Trading Bot Platform?
    Which is Best Crypto Trading Bot Platform?

About

Cryptoate site is a comprehensive resource for everything related to cryptocurrency and blockchain. We aim to be a one-stop solution for all your crypto and blockchain news and events.

Email: [email protected]

Recent Posts

  • Introducing ZenbitX: The Next-Gen AI-Driven Crypto Investment Platform
  • Gate Introduces Brand New Domain Gate.com and Brand Logo, Advancing Toward the “Next-Generation Crypto Exchange”
  • GateToken (GT) Burns 1,542,910.7518074 Tokens in Q1 2025, Steadily Reinforcing Long-Term Value

Catagories

  • Mining
  • Crypto
  • Press Release
  • Price Analysis
  • Cryptocurrency
  • Trading
  • Cryptocurrencies
  • Blockchain

Calender

May 2025
M T W T F S S
 1234
567891011
12131415161718
19202122232425
262728293031  
« Apr    
  • Privacy Policy
  • About Us
  • Terms and Conditions
  • Contact Us
Social icon element need JNews Essential plugin to be activated.

Copyright © Cryptoate

No Result
View All Result
  • Home
  • Crypto
  • DEFI
  • NFT
  • Press Release
  • Contact Us

Copyright © Cryptoate