The increase in crypto-derivative trading is likely to continue in the midst of the bull market.
Some of the biggest names in the blockchain space have supported a new exchange of cryptomoney derivatives, indicating that the next bull market could be driven by institutional investors.
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The Globe crypto-derivative platform raised USD 3 million in initial investments to launch its Globe Derivative Exchange. The new platform aims to attract institutional investors to the world of crypto currency. Early stage investors in the new Bitcoin Revolution company include billionaire Tim Draper, blockchain investment fund Pantera Capital and venture capital firm Y Combinator.
Pantera executive Paul Veradittakit cited the growing institutional interest in cryptomonies as one of the main reasons his company decided to invest in Globe.
In a quote shared with Cointelegraph, Veradittakit said:
„We are seeing a wave of interest in crypto assets from major banks, financial technology companies and portfolio managers. Globe has created the platform and products that these sophisticated market players need and expect (…) We are excited to support the Globe team in delivering a next generation platform for the crypto financial system“.
Globe has developed its own matching and risk engine, which it calls Thor. The company says Thor was built by engineers from leading financial services companies, including JP Morgan, BAML, Citibank, UBS and Getco.
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Crypto-derivative trading has soared this year, with BitMEX, HuobiDM, OKEx and Binance futures all experiencing large increases in volumes. The increase in derivatives is just one of the many ways the digital asset industry has evolved over the past three years.
A recent report from the Kraken cryptomoney exchange found that derivatives are „now at least 4.6 times the size of the spot volume“ and this trend is expected to continue.
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Kraken says that the use of leverage is one of the greatest attractions of derivatives platforms. On its official website, Globe claims to offer free leverage of up to 100 times.