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Crypto Derivatives Put Up Record-Breaking Trading Volume During the First Week of March

Deribit and Coinbase report record crypto derivatives activity

This week, the landscape of crypto derivatives trading was revolutionized, with Deribit and Coinbase Institutional leading the charge. Deribit revealed on February 29 that its 24-hour trading volume soared to an all-time peak of $12.4 billion. The exchange also reported that open interest – the total number of outstanding derivatives contracts – had eclipsed $29 billion, marking another historic milestone. 

Meanwhile, Coinbase Institutional wasn't far behind. On March 1, it boasted its second-best trading day ever, with $380 million worth of Bitcoin (BTC) and Ether (ETH) futures exchanged by an unprecedented 850 unique end-users.

Impact on the market and future outlook

The Greeks Live platform highlighted this trend with a record-setting options trading volume of $620 million in a 24-hour period. 

 They noted, pointing to the increasing market confidence among participants:

"Solid inflows are making for a very healthy market structure,"

The spotlight on U.S. spot Bitcoin exchange-traded funds (ETFs) has intensified, driven by their significant role in propelling the spot bull market. March 1 saw Greeks Live remarking on the ETFs' influence: 

"U.S. spot Bitcoin ETFs are driving the spot bull market, which saw record volumes this week as Bitcoin’s price hit as high as $64,000." 

This surge in activity coincides with a period of high anticipation, as nearly 32,000 BTC options and approximately 235,000 ETH options contracts are poised for expiry, potentially setting the stage for even more pronounced market movements.

As the crypto derivatives sector continues to reach new heights, the interplay between options trading volumes, ETF performances, and spot market dynamics will be crucial in shaping the future trajectory of the cryptocurrency market.