Until now, Deribit exchange has been the leading platform for Ethereum options and also leading the space for Bitcoin options with over 75% market share. The average Open Interest for Ethereum options on Deribit since launch in May last year is around $39 million. It is currently at at an All-Time High with respect to number of ETH. Nevertheless, Binance aims to dominate that market as well.
Moreover, the addition of XRP options is likely to up the ante on altcoin speculations as well. BitMEX was the one of the first major derivatives exchange to offer XRP futures in February this year, besides Binance, Okex, Poloniex and a select few exchanges. Binance is one of the few exchanges which offers futures contracts for a variety of cryptocurrenices.
While the risk is reduced with options contracts, the choice of trading futures or options depends on the preference of traders. Furthermore, the premium around the price of options can act as a robust indicator of market sentiments. However, it also stands to add more volatility in prices.
Do you think the addition of trading products is good or bad for long-term adoption of cryptocurrencies? Please share your views with us.
Luke has had a long interest in financial technology, especially cryptocurrency and blockchain. With a Bachelors degree in Journalism and Media, Luke is dedicating his writing skills for the digital currency sphere.He can be contacted at email@example.com