Cryptocurrencies
Crypto Exchanges Are Now Eyeing Derivatives After FTX’s Collapse
- Traders looking to leverage positions are turning to exchanges
- Bitcoin price volatility boosts demand for the products
Photographer: Andrey Rudakov/Bloomberg
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Crypto exchanges are rushing to fill the void left by FTX, once one of the largest derivatives exchanges for digital assets, as the cash market faces declining volume and liquidity.
FTX’s collapse has become an opportunity for other exchanges to capture market share or enter a space now dominated by Binance, the world’s largest crypto exchange. Some exchanges showed interests in buying FTX’s derivatives platform in the US, while others are just looking to build brand new derivatives exchanges. At the same time, the demise of several crypto lenders like Genesis Global Holdco LLC have left traders looking for other ways to leverage their positions.