United States exchanges are betting big on cryptocurrency derivatives as market turbulence from US President Donald Trump’s looming trade war propels demand for the financial instruments.
Since late 2024, exchanges including Coinbase, Robinhood, Kraken, and the Chicago Mercantile Exchange (CME) Group have been listing new types of crypto derivatives and mulling multibillion-dollar acquisitions as they vie for control of the burgeoning market.
In April, the stakes became even higher after Trump’s unveiling of sweeping tariff plans sent financial markets into a frenzy and spiked crypto derivatives trading volumes.
“Institutional and sophisticated retail traders are increasingly turning to crypto derivatives platforms to navigate macroeconomic risks and uncertainty brought on by escalated tariff policies and global trade tensions,” David Siemer, CEO of asset manager Wave Digital Assets, told Cointelegraph.
Consequently, US exchanges are “experiencing record-breaking surges in trading activity and are expanding their investment offerings with the promise of regulatory clarity,” Siemer said.
Related: Coinbase launches CFTC-regulated SOL futures in US
Trump spikes trading activity
Crypto derivatives trading activity took off in 2024 after Trump’s November election victory sent exchange volumes to record highs.
In December, Coinbase said trading activity on its derivatives exchange rose by more than 10,000% year-over-year. Similarly, CME Group flagged crypto derivatives as among the exchange’s fastest-growing product segments during its 2024 earnings call.
Trump’s tariff plans, announced April 2, further accelerated trading activity. As of April 23, net open interest in Bitcoin (BTC) futures, the most popular crypto derivatives, rose by approximately 30% from the start of the month, according to data from Coinalyze.
Futures contracts are standardized agreements to buy or sell an underlying asset at a future date, often using leverage in a bid to enhance returns.
Heated competition
Burgeoning trading volumes are fueling competition among exchanges.
Since February, Coinbase has launched several new crypto derivatives products, including futures contracts tied to altcoins such as Solana (SOL) and XRP (XRP).
Meanwhile, Robinhood listed Bitcoin futures — its first crypto derivatives contracts — in February and, in March, CME Group listed its first Solana futures contracts.
The CME SOL futures clocked upward of $12 billion in volume during the first day of trading, the exchange told Cointelegraph.
Additionally, exchanges are turning to mergers and acquisitions to hasten growth.
Coinbase is reportedly in talks to buy crypto derivatives exchange Deribit in a multibillion-dollar bid to expand its footprint in the market segment.
In March, US crypto exchange Kraken agreed to buy NinjaTrader, a futures exchange, for $1.5 billion.
“The recent wave of tariffs has transformed crypto derivatives exchanges into critical market infrastructure,” Nic Roberts-Huntley, CEO of Web3 developer Blueprint Finance, told Cointelegraph.
“While traditional markets faltered under tariff pressures, derivatives platforms have inversely flourished, serving both as speculative venues and protective hedging mechanisms in a fragmenting global trade landscape,” Roberts-Huntley said.
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