A report by CryptoCompare, published on July 6, closely analyzed the monthly trends in the crypto currency exchange market and found that crypto derivative volumes began to decline after peaking in May. Crypto derivative volumes fell by 35.7% in June to USD 393 billion.
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Historical monthly volumes of derivatives
The general trend that was also observed in the spot markets can be partially explained by the lack of volatility that Bitcoin and most of the crypto assets within the market are currently experiencing. There are some exceptions, such as DeFi tokens, which significantly outperformed Bitcoin (BTC) during the last month.
Despite the decline in overall volumes for the derivatives markets, regulated options seem to be gaining a lot of popularity. In June, the total volume of Bitcoin options on the Chicago Mercantile Exchange (CME) increased by 41% to reach another all-time monthly high of 8,444 contracts traded. Meanwhile, BTC futures traded on the CME declined by 23% during June, which was still the second largest month in 2020.
Other signs of institutionalisation
While the high volumes at WEC are a welcome sign for those patiently waiting for institutionalization to be the catalyst that will take Bitcoin and the other cryptosystems to new heights, there are other factors that point to this possible change.
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These trends are already seen in funds such as GBTC, which has a demographic of institutional investors of over 80% and currently manages digital assets valued at USD 4.1 billion. Barry Silbert, CEO of GBTC’s Digital Currencies Group, tweeted that the fund has recently experienced its biggest increase, although details are not yet known.
Companies that cater to institutional needs are also jumping on the bandwagon of crypto-currency, further consolidating this trend. For example, Bitcoin Billionaire, one of the four largest accounting firms in the United Kingdom, launched a crypto-currency management platform called „Chain Fusion. In a recent report from the firm, KPMG said
„Institutionalization is the market participation at scale of small and large entities within the global financial ecosystem, including banks, brokers, exchanges, payment providers, fintech and service providers.