CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 82.67% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money

Crypto derivatives volumes outstrip spot trades in June

By Aaron Woolner

04:33, 13 July 2021

Crypto trading image

Cryptocurrency derivatives volumes outstripped spot trades for the first time this year in June, against a background of shrinking overall volumes. 

Derivatives had a total market share of 53.8% in June versus 49.4% in May, with a monetary value of $3.2trn – while total spot volumes were $2.7trn, according to data provided by CryptoCompare.

While derivatives edged out spot trades, both asset classes saw volumes decline in June as China’s mining crackdown and a falling bitcoin price hit market interest. Total derivatives volumes were 40.7% down on June – versus a 42.7% fall for spot activity.

Lower volatility

“As a result of both lower prices and volatility, spot volumes decreased by an immense 42.7%, while total derivative volumes decreased 40.7%. This was also the case for BTC and ETH futures open interest, which were down 31.8% and 29.3% respectively,” the London-based firm said in its report. 

Crypto exchange Binance has been the subject of several moves by regulators in Thailand, the UK, Japan and the Cayman Islands in recent weeks, however, this negative publicity has not affected its volumes – yet. Binance topped the rankings for both derivatives and spot trades with $1.73trn and $668bn respectively. 

BTC/USD

98,642.75 Price
+0.560% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 106.00

ETH/USD

3,334.84 Price
-0.460% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 6.00

Gold

2,707.09 Price
+1.370% 1D Chg, %
Long position overnight fee -0.0174%
Short position overnight fee 0.0092%
Overnight fee time 22:00 (UTC)
Spread 0.30

US100

20,641.60 Price
-0.250% 1D Chg, %
Long position overnight fee -0.0241%
Short position overnight fee 0.0019%
Overnight fee time 22:00 (UTC)
Spread 1.8

Paradoxically, despite Binance attracting the ire of regulators, it appears to be benefitting from a trend by traders that CryptoCompare terms, “top tier exchanges”. Volumes on the 15 most highly rated digital asset bourses have increased markedly since December 2019, according to the firm’s data. 

What is your sentiment on BTC/USD?

98642.75
Bullish
or
Bearish
Vote to see Traders sentiment!

Top tier venues

Total top tier volumes now stand at 88%, versus a low of 47%. 

“As Bitcoin attracts further high-grade investment, trading on the lowest risk venues...becomes a priority. This, combined with regulatory pressure to improve operational standards has gradually increased Top Tier volumes at the expense of Lower-Tier volumes,” CryptoCompare said. 


Trade Bitcoin to US Dollar – BTC/USD CFD

1m
5m
15m
30m
1H
4H
1D
1W

Read more: Thai regulators file criminal complaint against Binance

Rate this article

Capital Com is an execution-only service provider. The material provided in this article is for information purposes only and should not be understood as investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents and has not been prepared in accordance with the legal requirements designed to promote investment research independence. While the information in this communication, or on which this communication is based, has been obtained from sources that Capital.com believes to be reliable and accurate, it has not undergone independent verification. No representation or warranty, whether expressed or implied, is made as to the accuracy or completeness of any information obtained from third parties. If you rely on the information on this page, then you do so entirely at your own risk.

Still looking for a broker you can trust?

Join the 660,000+ traders worldwide that chose to trade with Capital.com

1. Create & verify your account 2. Make your first deposit 3. You’re all set. Start trading