The expert explained the record demand for cryptocurrency futures

The growing demand on the Moscow Stock Exchange for derivatives in general and for cryptocurrency futures in particular is due to a combination of several factors. The key one is the high volatility in the cryptocurrency market. This point of view was expressed by Yaroslav Kabakov, Director of Strategy at Finam IC, in an interview with Izvestia. Such volatility has traditionally attracted active investors and traders who focus not so much on long-term asset ownership as on making a profit from price fluctuations.

"Derivatives are best suited for such strategies, as they allow you to work for both growth and decline in the market, as well as use margin trading mechanisms without having to freeze significant amounts of capital," the expert explained.

The demand for cryptocurrency futures has grown because they provide an opportunity to gain exposure to the price movements of crypto assets in the familiar and regulated infrastructure of the stock market, without direct ownership of digital currencies, he stressed.

"For many investors, it is fundamentally important that there is no need to open crypto wallets, store private keys and interact with foreign crypto exchanges, which reduces both operational and legal risks. Settlement futures presented on the Moscow Stock Exchange are linked to the value of the underlying instruments reflecting the dynamics of cryptocurrencies, and assume a monetary settlement based on the results of the contract, rather than the supply of the asset itself. This makes the tool understandable for professional market participants who are accustomed to classical derivatives," the source said.

At the same time, the use of cryptocurrency futures is associated with increased risks. The main one is the extreme volatility of the underlying asset, due to which losses can form very quickly, especially when using borrowed funds, Kabakov added. Regulatory risks also remain significant: the crypto tools market remains sensitive to changes in the rules and positions of supervisory authorities.

"Collectively, this makes cryptocurrency futures a tool primarily for qualified investors who are ready for increased risk and who understand the specifics of the futures market well," the specialist concluded.

Read more about how cryptocurrency futures work in the Izvestia article.

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