Investment firm YieldMax has applied to launch an ETF allowing investors to earn monthly yields on MicroStrategy shares.
Derivatives, financial instruments whose value derives from an underlying asset, serve diverse purposes in global markets. They enable investors to hedge risks, speculate on price movements and achieve portfolio diversification. Traditional derivatives include futures, options and swaps, widely used in commodities, currencies and interest rates.
In the realm of cryptocurrencies, crypto derivatives have gained prominence, allowing traders to speculate on digital asset prices without owning the underlying assets. Crypto derivatives, including futures contracts and options, offer potential advantages such as increased liquidity, allowing traders to enter large positions with minimal upfront capital. They also enable risk management, providing a way to hedge against volatile crypto markets.
However, crypto derivatives come with risks. Their complex nature and high volatility amplify potential losses. Market manipulation and lack of regulations pose significant concerns. Additionally, excessive reliance on derivatives can lead to systemic risks, impacting both crypto markets and traditional financial systems.
Despite these challenges, crypto derivatives play a vital role in the evolving digital economy, offering opportunities for sophisticated trading strategies while requiring caution, regulatory oversight and investor education to mitigate potential downsides and ensure market stability.
Institutional investor interest soars as Bitcoin options open interest hits record high.10161
Bitcoin price is up today as institutional investor inflows and traders’ belief that a spot BTC ETF approval is on the way boosts bullish momentum.240452
Bitcoin futures data counters the assumption that BTC’s rally to $42,000 was primarily propelled by shorts liquidations. What is next for BTC?17163
The Bitcoin futures annualized premium jumped to 34% on Nov. 28, leading analysts to speculate about an imminent spot BTC ETF approval.11086
BTC’s correction reveals a disconnect between pro traders’ confidence and retail investors’ skepticism amid regulatory shifts.15361
Getting regulatory approval has been crucial for companies, particularly in a tight regulatory environment during the crypto winter.5357
More than $15 billion in Bitcoin open interest reaches a predictable conclusion as shorts get squeezed and BTC price action targets $36,000.9659
Robust BTC derivatives data indicates strong demand for leveraged longs.16343
The highest Bitcoin open interest levels in over six months come as analysis predicts that BTC price action will fail to flip $36,000 this week.17920
Bitcoin eats away at upside that followed the Federal Reserve interest rate announcement, with BTC price action over $1,000 lower.8439
Open interest on Bitcoin options recently hit a year-to-date high, but what is fueling this newfound bullish sentiment?13547
Bitcoin options and futures data suggests the current BTC price movement could have longevity.16166
Bitcoin trading volumes at a five-year low and the S&P 500 reaching its lowest levels in over three months could spell trouble for BTC bulls.15929
To expand its derivatives business overseas, Coinbase attempted to acquire FTX Europe twice since it filed for bankruptcy in November 2022.3537