Deribit, a leading crypto derivatives exchange, has announced that its on-demand liquidity tool, known as the Block Request-for-Quote (RFQ) system, has achieved a cumulative trading volume exceeding $23 billion since it launched in early March. This significant milestone reflects the rapid uptake of cryptocurrency trading among institutional investors.
The RFQ system allows large traders—primarily institutions and high-volume traders—to request pricing for various trading structures, including single instrument trades or complex multi-legged strategies that encompass spot, futures, and options. Market makers then respond with pricing, enabling traders to execute large orders without causing significant market price fluctuations, much like negotiating a deal for bulk produce directly with a farmer.
Deribit's CEO, Luuk Strijers, highlighted that the RFQ system enhances the trading experience, allowing for multi-leg trades and competitive quotes, which in turn leads to better execution outcomes. He mentioned, "The RFQ system allows for multi-leg trades, multiple maker quotes, and greater price efficiency. It reflects strong institutional demand and Deribit’s continued focus on liquidity and trade quality."
Since its launch, the RFQ tool's trading volume has shown remarkable growth, starting from $883 million in March to a staggering $9.8 billion in May alone. The percentage of block trades executed via this tool has risen impressively, indicating a growing preference among large traders for this method, now accounting for 27.5% of trades this month compared to lower percentages in previous months.
This trend signals a growing certainty among institutional players regarding cryptocurrency as a legitimate asset class, as they seek tools that minimize market impact when executing large transactions.
The RFQ system allows large traders—primarily institutions and high-volume traders—to request pricing for various trading structures, including single instrument trades or complex multi-legged strategies that encompass spot, futures, and options. Market makers then respond with pricing, enabling traders to execute large orders without causing significant market price fluctuations, much like negotiating a deal for bulk produce directly with a farmer.
Deribit's CEO, Luuk Strijers, highlighted that the RFQ system enhances the trading experience, allowing for multi-leg trades and competitive quotes, which in turn leads to better execution outcomes. He mentioned, "The RFQ system allows for multi-leg trades, multiple maker quotes, and greater price efficiency. It reflects strong institutional demand and Deribit’s continued focus on liquidity and trade quality."
Since its launch, the RFQ tool's trading volume has shown remarkable growth, starting from $883 million in March to a staggering $9.8 billion in May alone. The percentage of block trades executed via this tool has risen impressively, indicating a growing preference among large traders for this method, now accounting for 27.5% of trades this month compared to lower percentages in previous months.
This trend signals a growing certainty among institutional players regarding cryptocurrency as a legitimate asset class, as they seek tools that minimize market impact when executing large transactions.
