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WorldCoinIndex Adds Crypto Derivatives Section to Price Data and News Information

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WorldCoinIndex Adds Crypto Derivatives Section to Price Data and News Information

Quick Take:

  • WorldCoinIndex launches crypto derivatives data section for Perpetuals, Futures, and Options
  • WorldCoinIndex already offers crypto data about 3000 coins across 150 exchanges and 1500 markets
  • WorldCoinIndex says crypto derivatives innovation could have significant effect on the cryptocurrency market

On March 14, 2020, cryptocurrency information aggregator WorldCoinIndex, announced it will now offer a cryptocurrency derivatives data section to the global crypto community.

Amsterdam-based WorldCoinIndex has been offering real-time and historical crypto aggregated data for six years. The platform stated that the decision to add a cryptocurrency derivative section was driven by the rapid growth of the cryptocurrency ecosystem.

The crypto derivative data section will now be in addition to the current listing of over 3000 coins, connection to 150 digital assets exchanges, and 15,000 crypto markets.

WorldCoinIndex Index Will Offer Data on Four Crypto Derivative Classes

The new crypto derivatives section will aggregate data on daily trade volume and open positions from over 900 derivative contracts.

“The derivatives market is categorized in Perpetuals, Futures, and Options-data on each is available on our platform.”

On average, crypto derivatives produce a daily volume of $40 billion and an open interest of $5 billion. As the leading crypto asset in the market, Bitcoin also produces the largest share of new crypto derivative contracts and is currently dominating the space with 60% of all volumes and contracts.

“Our Bitcoin Price Index represents an average of bitcoin prices across leading global exchanges different fiat currencies.”

Other cryptocurrencies like Ethereum and Ripple also have smaller holdings but are expected to grow as the cryptocurrency market matures, making it feasible to offer even more cryptocurrencies.

Cryptocurrency Derivatives Represent a High Potential Innovative Development

WorldCoinIndex stated that digital currency derivatives represent a high-potential and innovative development, one of the many new products and services from the traditional market that have entered the cryptocurrency market.

“Derivatives could have significant impact on cryptocurrencies, thanks to the numerous advantages they provide to investors and the cryptocurrency ecosystem as a whole.”

Derivatives play an important in risk to hedge risk and to speculate on the price future price movement of an underlying asset. The crypto market is still young and plagued with high volatility, as evidenced by the turbulent history of BTC price movement over the years.

The Rise of Cryptocurrency Derivative Markets

The first bitcoin futures trading platform was launched in 2017 by Chicago Board Options Exchange (CBOE) and the Chicago Mercantile Exchange (CME) during the first and the biggest crypto market.

For the first time, BTC and Altcoins investors could hedge positions on the wild nature of crypto assets, by signing contracts that settled directly to an underlying auction price of certain cryptocurrencies.

Additionally, it allowed investors to profit from both crypto bear and bull markets by shorting. Traders could borrow crypto assets like bitcoin and sell them on exchanges or through brokers when expecting the price to go down.

This allowed traders to purchase more of the same assets at lower prices, profiting from the price movement, and earning the exchanges or brokers a commission.

Other institutional exchanges started to offer crypto derivatives as well, including LedgerX, which started trading options and swaps in October 2017.

In 2018, the New York Stock Exchange intended to launch Bakkt, the first physically settled BTC futures exchange, which didn’t launch until September 2019, after a long regulatory bout with the Commodities Futures Trading Commission.

Another rising star in crypto derivatives is FTX, which offers derivatives, volatility products and leveraged tokens, and with a market cap of $831Million.

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