Crypto Derivatives: the rise of a new major digital asset class

CME Group's crypto derivatives market is growing, with regulated and centralized clearing, new products launching, and increasing institutional adoption driving growth and stability.

Key takeaways
  • Crypto derivatives have experienced significant growth, with volatility at a two-year low.
  • CME Group’s product suite includes Bitcoin and Ether futures, with the ability to trade on multiple exchanges and across six exchanges.
  • The company’s reference rate uses medians to reduce the effect of outlier prices, making it a more robust measure of the market.
  • Institutions are increasingly using crypto derivatives to hedge or speculate, with a growing number of account openings and increased open interest.
  • The correlation between crypto prices and traditional asset classes, such as gold and S&P 500, is increasing, driven by factors like monetary policy and economic sentiment.
  • CME Group’s regulated and centralized clearing model provides an attractive option for institutions looking to trade crypto derivatives.
  • The company is launching new products, including weekly options on Bitcoin and Ether, and has increased its reference rates to provide more transparency and depth in the market.
  • The growth of Decentralized Finance (DeFi) and other emerging use cases is driving interest in Ether and other crypto assets.
  • Regulated infrastructure and institutional adoption are critical to the growth and stability of the crypto derivatives market.
  • Market participants are increasingly using crypto derivatives to manage risk and participate in the growth of the crypto market.
  • CME Group is committed to providing a transparent, regulated, and liquid market for crypto derivatives, with a focus on innovation and customer needs.
  • The company’s BRR (Bitcoin Real-time Reference rate) is a once-a-day price on Bitcoin, and has been highly correlated with the price of gold.
  • The rise of crypto derivatives has led to increased interest in the underlying assets, driving growth in the market and adoption by institutions.
  • Market participants are looking for ways to participate in the crypto market, with a growing focus on regulated and trusted infrastructure.
  • CME Group’s experience in traditional derivatives has provided a foundation for the development of crypto derivatives, with a focus on innovation and customer needs.
  • The company’s real-time index provides a once-a-second snapshot of the market, making it an attractive option for market participants looking to trade crypto derivatives.