What is especially important to have on the radar in the new year in the crypto world? We have identified eight different topics on which a lot will happen next year. Derivatives and related products.
This article is part of a cooperation and was originally published on 10×10.ch
2019 was the year of crypto financial products, especially derivatives. The launch of the Bakkt exchange and its physically cleared Bitcoin futures was highly anticipated. In addition, the exchange announced its intention to offer options based on the Bitcoin futures and an app for consumers by the new year at the latest.
Synthetic assets on DeFi platforms
In the DeFi world, the world of decentralized finance, the Synthetix platform in particular caused a sensation in 2019. This is an issuing platform for numerous synthetic assets. The growth of the derivatives market is therefore likely to continue in 2020 - in both the DeFi world and the traditional world. Bitcoin and - especially in the DeFi world - ether are increasingly being used as collateral for loans, which should promote the further development of the corresponding derivatives markets. Particularly since Bitcoin and ether, due to their properties, are price-volatile assets - more volatile than assets for collateralization in the traditional world - it can be assumed that the crypto world will develop an even more pronounced derivatives market in the future.
More volatility products expected on Bitcoin
We should also see a lot of crypto-volatility products coming onto the market in 2020. Not only to the delight of hardcore bitcoin enthusiasts, who are sometimes suspicious of the increasing financialisation. And quite rightly so, as has recently been shown: Although the Bitcoin Bakkt Futures should be 100 percent collateralized with Bitcoin, according to the original announcement, in reality they will be subject to an initial margin of 37 percent. In addition, this margin can only be deposited in dollars (cash) or US government securities, but not in Bitcoin.
