Crypto Derivatives Trading Volume Reaches Record Highs

Crypto derivatives, including options and futures, have experienced a significant surge in daily trading volumes, hitting record highs on various exchanges. Deribit and Coinbase Institutional, two major players in the crypto derivatives market, reported unprecedented levels of activity this week.

Deribit's Milestones

Deribit, a prominent crypto derivatives exchange, announced that its 24-hour trading volume reached an all-time high of $12.4 billion, accompanied by a record open interest exceeding $29 billion. Additionally, the platform's client assets soared to $4 billion, marking another record-breaking achievement.

Market Dynamics

The surge in derivatives trading coincided with a bullish trend in the U.S. spot Bitcoin ETFs market, driving Bitcoin's price to reach as high as $64,000. While options volume positions are modestly rising, solid inflows are contributing to a healthy market structure, according to Greeks Live.

Options Expiry and ETFs Performance

As part of the weekly routine, Friday marks crypto options expiry day, with around 32,000 BTC options and 235,000 ETH options contracts set to expire on March 1, with notional values of $1.9 billion and $793 million, respectively. Despite the strong performance of spot Bitcoin ETFs, a significant outflow from Grayscale's ETF on Feb. 29 led to a drop in net inflows for all ten ETFs to $93.8 million, the lowest level since Feb. 6.

BlackRock's Bitcoin Fund

Notably, BlackRock's Bitcoin fund experienced a substantial net inflow of $604 million on Feb. 29, surpassing Grayscale's net outflows and outperforming all other ETFs combined in terms of daily net inflows.

The recent surge in crypto derivatives trading volume highlights the growing interest and participation in the digital asset market, driven by both retail and institutional investors.