The first blockchain-based cryptocurrency was Bitcoin. Bitcoins are
defined as digital coins that can be sent through the Internet and are
considered the first decentralized digital currency.
Yermack (2015) asserted that Bitcoin may not be considered as a cur-
rency since it performs poorly as a unit of account and as a store of
value. The high volatility of Bitcoin spot prices and the range of prices
quoted on various Bitcoin exchanges were seen to damage Bitcoin’s
usefulness as a unit of account. If the introduction of Bitcoin futures
and the ability to trade
these futures would have resulted in a reduction
in the variance of Bitcoin prices or facilitated hedging strategies, that
could have mitigated pricing risk in the spot market. In that case, it is
possible that the Bitcoin could have acted as a unit of account, moving
it closer to being a currency.
We know that Bitcoin, and other digital assets, are considered as highly
volatile investments. Therefore, a way to obtain some benefits and to
reduce the cost of the investment might be investing in Bitcoin futures.
Futures trading offers the possibility of speculating about any direction
in the market, minimizing the risk (Hurst et al., 2010). Thanks to the
leverage effect, it is possible to invest the same amount of money than
in the spot exchange with a fewer number of contracts. Another contri-
bution of futures is offering the opportunity to hedge existing positions
straightforwardly (in both upward and downward market trends), al-
lowing the investor to easily adjust the risk of the portfolio to any mar-
Despite the enormous risk of this market, the use of cryptocurrencies
has been steadily increasing in recent years. Today, there are thousands
of alternate cryptocurrencies with unlike functions or specifications.
Some of these currencies are clones of Bitcoin, while others are forks
or new cryptocurrencies that split off from an already existing one. Ac-
cording to data from MARKET COIN CAP (2021), the capitalization
of the cryptomarket reached 3 Trillion dollars in October 2021, from
125 billion dollars in December 2018, an increase during 2021 of more