Derivative Products Are Key to Indonesia’s Crypto Market Growth

Todaysgist.com, Jakarta – The crypto asset industry in Indonesia continues to show significant growth. The value of crypto asset transactions in the period from January to June 2024 reached a fantastic figure of IDR 301.75 trillion.

One important aspect that is gaining attention is crypto derivatives. Crypto derivative instruments, such as forwards, futures, optionsAnd swaps play an important role in market diversification and risk management.

Upbit Indonesia Chief Operating Officer (COO) Resna Raniadi said that crypto derivatives play an important role in market diversification, as they allow investors to start entering and taking positions in various digital assets without having to own them directly.

“This helps mitigate risks and create wider investment opportunities,” he explained in a written statement, Monday (29/7/2024).

Crypto derivatives themselves include various types of instruments such as forwards, futures, optionsAnd swaps. This instrument not only allows diversification but also provides better liquidity in the market.

Upbit also explained that crypto derivatives also play a crucial role in modern financial markets. They provide instruments that allow investors to hedge their assets against extreme price fluctuations, manage risk, and gain exposure to crypto assets without having to own them.

Not only that, the government also claims to be ready to boost the development of crypto-based derivative businesses in Indonesia. The high number of digital asset investors recorded is one of the reasons for regulators to continue to encourage the growth of this business segment.

This is also coupled with an explanation from the regulator stating that there are still many domestic investors who trade their crypto derivatives on foreign exchanges, which if done domestically can certainly increase state revenue.