Yello Paradisers! Deribit, a prominent name in the crypto world, is set to make a significant move. As reported by Bloomberg, the platform has plans to introduce “linear options” for $XRP, $SOL, and $MATIC in January. While this is a significant step forward, the timing has raised some eyebrows. Luuk Strijers, the Chief Commercial Officer, expressed concerns about the current market’s low volatility. However, he remains optimistic, anticipating a surge in volatility in January, aligning perfectly with the launch of these new options.
📰 A Dip in the Market
The crypto derivatives trading volume has seen a decline recently. From the start of the year, where it was at a peak of $2 trillion, it has now dropped to around $1.5 trillion in September. This decrease is attributed to the slump in digital asset prices and their volatility, especially when compared to the highs experienced in 2021.
📰 Potential Market Changes
The crypto market is eagerly awaiting some potential changes that could alter its course. Traders are looking forward to the possible market impact of the recently launched Ether futures exchange-traded funds. Additionally, the potential approval of Bitcoin spot ETFs by U.S. regulators is also on the horizon. These developments could reintroduce the much-needed volatility into the digital asset market.
📰 Deribit’s New Ventures
In a first for the company, Deribit is looking to expand beyond its usual offerings of Bitcoin, Ether, and USD Coin options. The company, currently based in Panama, is also considering a move to Dubai, known for its crypto-friendly policies. This relocation will take place once they secure the necessary license. On the staffing front, Deribit, which currently employs 115 people, plans to add another dozen to its workforce.
📰 Market Volatility Insights
The volatility metrics for leading cryptocurrencies like Bitcoin and Ether are currently at near-historic lows. However, Richard Galvin, co-founder at Digital Asset Capital Management, is optimistic. He believes that the introduction of altcoin linear options could provide an effective hedging strategy for diverse crypto portfolios, especially considering Ether’s reduced volatility.
📰 Market Dominance
Deribit continues to dominate the options space with an 85% market share, leaving competitors like OKX, Binance, and Bybit in its wake. The platform’s primary clientele is institutional clients, accounting for about 85% of its trading volume.
📰 A New Trading Platform
Earlier in the year, Deribit launched a zero-fee spot crypto trading platform. Strijers mentioned that the primary objective of this platform is to enhance derivatives trading. The focus is not to compete in the token buying and selling market but to boost revenue primarily through derivatives trading.
ParadiseTeam 🌴
