Changes in the Derivatives Market: Decrease in Bitcoin Leverage and Increase in RWA Futures

In the digital asset derivatives market, the demand for leveraged investments in Bitcoin and Ethereum has decreased, while trading in perpetual futures based on stocks and commodities has increased. The open interest in perpetual futures across five major exchanges has dropped from $81 billion a year ago to $67 billion, while open interest in real-world asset (RWA) linked perpetual futures has risen to $9 billion, accounting for about 14% of the total. Open interest in Bitcoin perpetual futures stands at $8 billion, Ethereum at $5 billion, and other digital assets have decreased by $10 billion. Although perpetual futures contracts linked to traditional asset prices have increased, they have not fully offset the decline in the existing digital asset futures market. Since the significant drop in the digital asset market on October 10 last year, the scale of leveraged investments has not recovered, with high interest rates and geopolitical risks weighing on investor sentiment. The expansion of institutional investors' participation in the market is expected to contribute to a reduction in extreme speculative activities.

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