2024 will be the year crypto investors get sophisticated with derivatives
Exotic options, structured products, and collateralized debt obligations will become increasingly lucrative options for crypto trading in 2024.
During the 2017 bull run, initial coin offerings (ICOs) were all the rage. The last bull market — in 2021 — was dominated by the growth of decentralized finance (DeFi) and yield farming. Now, as a fresh bull cycle gathers pace, 2024 will bring a breadth of more sophisticated financial products on-chain. From complex derivatives to structured products, big-boy instruments and traders will enter the digital-asset playground.
As we have seen with previous cycles, the crypto ecosystem tends to closely follow the traditional financial (TradFi) market. After all, Bitcoin (BTC) was first designed as an alternative payment system. ICOs even borrowed their name from TradFi's initial public offerings (IPOs), which date back to 1783.
Meanwhile, the DeFi ecosystem mimics traditional financial services, such as lending, borrowing, and yield generation, only in a decentralized manner. So it seems only natural that more complex financial vehicles should eventually get a Web3 makeover.
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