Futures will be the best crypto game in town even after a Bitcoin spot ETF
2 min read
The
Adventurous day traders who may have stuck to the foreign-exchange market in the past will likely start to venture into Bitcoin and other crypto instruments. And they will exercise this interest through the CME. Indeed, I suspect we will see increasing interest in perpetual swaps and other types of derivative instruments in the sector next year.
Crypto futures also benefit from clearer and more consistent regulation, which is another major factor here. While the Commodity Futures Trading Commission (CFTC) looks after futures, nobody has yet fully decided who looks after the crypto spot market from a regulatory perspective, and this remains a problem. Applications for these Bitcoin spot ETFs are currently sitting on the Securities and Exchange Commission’s desk, but as has become abundantly clear, Chairman Gary Gensler is a big fan of ambiguity.
Clear regulation is leading to obvious success in cryptocurrency futures, while the spot market is being hindered by regulatory opacity. And so, while the approval of an ETF is just a matter of time at this stage, we still don’t know how much time. While we are waiting, the futures market remains an extremely enticing trading ground for institutional investors.
Lucas Kiely is the chief investment officer for Yield App, where he oversees investment portfolio allocations and leads the expansion of a diversified investment product range. He was previously the chief investment officer at Diginex Asset Management, and a senior trader and managing director at Credit Suisse in Hong Kong, where he managed QIS and Structured Derivatives trading. He was also the head of exotic derivatives at UBS in Australia.
This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
