European crypto trading platforms rapidly expand their offering of derivatives to attract cautious investors amid stricter regulations and the prospect of high leveraged returns. In the coming months, the Dutch platform D2X, as well as London-based One Trading and GFO-X, are launching, while already established providers like Kraken from the USA are joining the market.

The international benchmark Brent crude oil has risen by more than 50% this year, surpassing the $67,000 mark, making derivatives increasingly central to the digital asset market. According to CCData, 71% of total trading volume is accounted for by futures and options, while open interest for crypto derivatives has exceeded the $40 billion mark for the first time.

Derivatives Offer the Opportunity for High Leverage," Explains Jason Urban, Global Head of Trading at Galaxy Digital.

These new market participants are increasingly relying on derivatives to meet the demand for leveraged products. Platforms like Bybit allow investors to leverage up to 125 times their stake, while Kraken offers leverage of up to 50. This enables traders to take larger positions with a fraction of the costs of directly purchasing cryptocurrencies like Bitcoin and Ether.

The competitive pressure is increasing as established providers like the Chicago-based CME Group boast repeated record trading volumes. The CME Group has introduced new derivative products such as Bitcoin Friday Futures, which are weekly and perfectly aligned with the New York trading calendar. "They are using every possible leverage to generate more business," says an experienced crypto trader.

The Regulatory Landscape Plays a Decisive Role in Market Development.

Additionally, Nasdaq-led Coinbase finalizes the acquisition of a Cyprus-based entity with an EU license to also offer regulated crypto derivatives. This underscores the growing importance of derivatives in the crypto market and the race for dominance in a booming segment.