This year has been an incredible one for bitcoin and ethereum futures. The ProShares Futures ETF made a splash after it became the first bitcoin ETF to be approved by the Securities and Exchange Commission, accumulating more than $1 billion in trading volume in the first two days after it launched. But futures for the two largest cryptocurrencies by market cap have been making a splash before then.
As cryptocurrencies like bitcoin and ethereum had grown into prominence with the bull rally that had begun at the end of 2020, investors looking to invest in the market but wanted to avoid directly holding the digital assets themselves had looked towards alternative ways to gain exposure. Bitcoin and ether futures had presented as the undisputed choice for these investors.
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Trading In Bitcoin And Ethereum Futures Ramp Up
Data from The Block Crypto shows that trading in bitcoin and ether futures had ramped up significantly in the year 2021. The numbers show that both digital asset futures recorded a 338% increase compared to volumes for the previous year which came out to be $7 trillion. In total, bitcoin and ether futures had both garnered a combined $32 trillion in trading volume for the year.
This is no doubt the highest trading volume ever recorded for bitcoin and ethereum futures. This growth follows the price surge recorded across the crypto market that saw bitcoin, ethereum, and other digital assets hit new all-time highs.
Bitcoin futures peaked in May | Source: The Block Crypto
Crypto exchange Binance led the charge as it made up the largest share of the trading volume for the futures. It maintained this dominance across both bitcoin and ether futures, providing the largest boost of any exchange.
Monthly trading volumes peaked in May when the market recorded more than $4 trillion across both digital assets. Bitcoin futures alone for the month reached $2.5 trillion, while ether futures peaked at above $1.5 trillion.
Spot Volumes Not Lagging
Spot volumes across exchanges did not disappoint for the year either. The Block Crypto also reported that over $14 trillion worth of trading volumes were recorded on centralized exchanges, while decentralized exchanges also marked a record-breaking year, pulling in over $1 trillion worth of trading volumes for the year.
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On the part of the digital assets, both bitcoin and ethereum also recorded a remarkable year. Both saw growth higher than 100% with multiple rallies during the year. Bitcoin had grown to a new high of $69,000, sparking $100K EOY predictions.
Ethereum had also rallied, outperforming bitcoin at every turn. The digital asset broke above $4,000 for the first time and came close to the coveted $5,000 price point before being beaten back down again.
In conclusion, both bitcoin and ethereum have had an incredible year of growth and adoption.
BTC trending at $49K | Source: BTCUSD on TradingView.com
Featured image from Medium, chart from TradingView.com