Bitcoin futures (BTC) for December 2021 are trading around $ 10,000 above the current spot price.
Futures contracts allow traders to buy an asset at a price agreed upon in advance, at some point in the future.
The growth of BTC could spark increased interest in futures contracts
According to data from Skew , Bitcoin (BTC) futures contracts for December 2021 are trading around $ 10,000 above the current BTC spot price.
With the total value of all Bitcoin Circuit contracts reaching $ 14 billion last week, it’s safe to say that there is considerable interest in cryptocurrency derivatives .
A futures contract allows its owner to buy the underlying asset at a price agreed in advance at a specific time in the future, such as an option contract. However, in the case of futures contracts, the holder is obligated to make the purchase.
Futures contracts are intended to protect against future price fluctuations. That said, of course, these contracts can also be traded by speculators.
Cryptocurrency futures contracts are only available on certain exchanges. Users can trade futures on popular Bitcoin platforms such as Binance , Kraken, and Bitfinex.
Institutional-grade exchanges offering crypto futures, such as the Chicago Mercantile Exchange ( CME ), or Bakkt, owned by the Intercontinental Exchange (ICE), allow professional traders to engage in crypto markets while reducing the effects of potential volatility.
FTX and CoinFlex are currently the only two exchanges to offer futures until December 2021. At the time of writing, CoinFlex had the highest number between the two exchanges at $ 60,250. For December 2021, BTC futures on FTX were trading at $ 58,750, but initially peaked at $ 61,850.
Another exchange, Deribit, was offering BTC futures for September 2021 at $ 56,200. However, most exchanges where crypto futures are available only offer them until July 2021, according to stock exchange data gathered by Skew.
Today, February 16, BTC broke above $ 50,000 for the first time . This is largely due to the growing institutional demand for Bitcoin, including Elon Musk’s $ 1.5 billion purchase of BTC . If the cryptocurrency continues to rise at a rate similar to that the community has seen in recent months, the $ 60,000 is not far away.