OKX, a leading crypto exchange and Web3 technology company, today announced the first report in its series of institutional market analysis entitled ‘How OKX’s Nitro Spreads tool can help institutional investors navigate volatile markets,” finding that bitcoin delivered 98% of its returns for the period on eight total trading days (out of 180) from 1 January to 30 June, 2023 (1H 2023) and underscoring the challenge of timing stable returns.
In addition, and according to implied volatility data for Bitcoin at-the-money options, participants are also expecting bitcoin spot-price volatility to increase in the future. Based on market research and trading data analysis*, OKX also found that factors contributing to price differentials between spot, futures and perpetual swaps – and key drivers for basis trading returns – include market preference on instruments, market sentiment, supply and demand imbalances, market liquidity and interest rate differentials.
OKX Global Chief Commercial Officer Lennix Lai said: “We’re seeing a growing number of institutional traders pursue market-neutral strategies. OKX offers traders a range of tools to realize their strategies and succeed in different market conditions; one such tool is Nitro Spreads, which enables the efficient execution of complex basis trades with just one click.”
The Nitro Spreads market analysis is focused on studying the challenges of long delta trading in the current crypto market and outlining how savvy institutional traders can pursue market-neutral strategies in a sideways market. OKX’s institutional research conducted the analysis after reviewing Bitcoin spot price** and derivatives* trading data from 1H 2023.
