As Bitcoin struggles to surpass its all-time high, professionals from esteemed institutions like the Chicago Mercantile Exchange (CME), TradingView, and TJM Institutional Services are optimistic about the role of crypto derivatives in shaping the future trajectory of the market. While bedroom traders voice concerns, these experts believe that the launch of a spot Bitcoin exchange-traded fund (ETF) will be instrumental in propelling Bitcoin's price to new heights.

During a discussion on the role of crypto derivatives at Consensus, TradingView's general manager Pierce Crosby emphasized the historical significance of derivatives in the crypto trading landscape. He noted that while derivatives have long been part of traders' strategies, the era of centralized exchanges from 2015 to 2022 was marked by high fees and slippage, causing challenges for spot and margin traders.

Crosby highlighted the potential of ETFs, stating, "The ETF is a great way for investors to quickly buy in and get out of the asset when necessary, primarily because you’re paying very low fees to get in and out."

Giovanni Vicioso, the global head of cryptocurrency products at CME Group, weighed in on the impact of the spot Bitcoin ETF on BTC's acceptance as a legitimate investment asset. He suggested that ETFs have attracted sidelined investors uncomfortable with centralized exchanges, hinting at the potential positive effect on Bitcoin's price discovery.

Jim Iuorio, managing director at TJM Institutional Services, discussed Bitcoin's role as a hedge against inflation and its correlation with traditional markets. He pointed out concerns about recent disappointing U.S. Treasury auctions, indicating a potential need for the Federal Reserve to intervene. Historically, loose monetary policy has been favorable for stocks, risk assets, and Bitcoin.

In addressing Bitcoin's correlation with traditional markets, Crosby mentioned the shifting narrative among larger institutional players. While acknowledging some correlation with stocks, gold, and oil, Crosby emphasized the resilience of the crypto market to internal black swans. He expressed confidence that once the market realizes the distinct nature of the crypto sector, it will rebound accordingly.