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Replying to myself because I think people are overreacting to the last paragraph. There is a case to be made that BTC spot and future are not delta one. I did
by Galanwe 4y ago
Replying to myself because I think people are overreacting to the last paragraph.
There is a case to be made that BTC spot and future are not delta one. I did not check specifically for BTC, but often in crypto the liquidity on futures is much higher than on spot, which makes the futures market much less sensible to market manipulation, flash crashes, whale dropping, etc.
Holdings are also much clearer and easier to assess for regulated futures than for spot.
- ryanobjc 4y agoCME futures are nothing you described above. Their liquidity is very poor, with tons of gaps in the price chart, and maybe like max 500M of vol a day, on the highest vol day, but really more like 120M vol a day. The reality is a lot of the vol on btc is due to liquidations. On one hand, volatility, on the other, crypto liquidations are much more fair than stock market margin.