FTX Market Share in Bitcoin Futures Nearly Doubled Since June
From the end of June through now, FTX’s market share has grown from 9% to 16%.
Cryptocurrency exchange FTX has overtaken competitors to become the second-largest exchange in the bitcoin futures market, behind only Binance, according to a report by Arcane Research.
- From the end of June through now, FTX’s market share has grown from 9% to 16%.
- FTX was founded by billionaire Sam Bankman-Fried, 29, in 2019. The exchange announced recently that its $900 million Series B funding round included more than 60 investors, including Paradigm, Ribbit Capital and Sequoia, and valued the company at $18 billion.
- “The exchange has long been the second-largest futures market in the broad crypto sector, but their bitcoin futures have lagged behind OKEx, CME (Chicago Mercantile Exchange) and Bybit up until recently,” the report said.
- Bybit’s bitcoin perpetual swap was the dominating futures instrument in April at around the time the cryptocurrency hit its $64,000 peak, according to the report.
- “Paying attention to the Bybit OI (open interest) could be a viable indicator to gauge whether the sentiment is turning over exuberant in the future,” Arcane’s report said.
- Global open interest recently surpassed $15 billion for the first time since May. Despite that climb, the market, in general, seems less over-leveraged given how the bitcoin denominated open interest sits at 330,000 BTC currently, according to the report.
- “Both prior to the May 19th crash and the July 26th short squeeze, the bitcoin-denominated open interest sat at a far more substantial 400,000 BTC," Arcane said.
- "This indicator suggests that the market is currently careful with leverage.”
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
Learn more about Consensus 2024, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.