The cryptocurrency derivatives market, especially Bitcoin and Ethereum futures, is experiencing unprecedented growth. This article explores the main factors behind this trend.
Unprecedented Institutional Inflows
Institutional interest in Bitcoin and Ethereum is rapidly increasing, marking a significant shift in their perception. These assets are becoming part of diversified portfolios for institutional investors such as hedge funds and pension funds. Growing recognition of Bitcoin as an inflation hedge has also contributed to increased interest. Over 88% of institutional investors find cryptocurrency appealing.
Game-Changing Ethereum Upgrades
Ethereum's upgrade, known as the "Merge," which took place on September 15, 2022, was a critical moment for the network. It reworked the consensus mechanism, reducing energy consumption by 99.95% and paving the way for future scalability improvements. This upgrade has increased investors' willingness, including institutional ones, to engage in staking, which also affects demand for ETH futures.
Regulatory Clarity and ETF Approvals
Global regulatory initiatives for cryptocurrencies are actively evolving. The SEC's approval of 11 spot Bitcoin ETPs in January 2024 was a significant step, opening new avenues for institutional investments in Bitcoin and Ethereum. These changes help reduce market uncertainties and legitimize crypto assets in the eyes of traditional financial structures.
Thus, the growth of BTC and ETH futures is driven not only by institutional investments and technologies but also by changes in the regulatory environment, shaping a new face for the cryptocurrency market.
