Axi, a leading trading platform renowned for its diverse financial offerings, has recorded a remarkable surge in crypto CFD (Contracts for Difference) volume in March. The volume escalated by 60%, approaching a staggering $16.7 billion, underscoring the burgeoning interest and investment in cryptocurrency derivatives.
The majority of this trading activity, accounting for 96%, was concentrated on the BTC-USD pair, highlighting Bitcoin’s dominant position in the crypto market and its appeal to investors seeking exposure to its price movements without owning the actual cryptocurrency. This significant upswing in trading volume is reflective of the increasing acceptance and integration of cryptocurrencies into mainstream financial portfolios.
January to March
Between January and March, approximately 25% of Axi’s clientele engaged in crypto CFD trading, indicative of a growing trend among traders to diversify their investment strategies to include digital assets. The company executed 1.5 million crypto CFD trades in March alone, with crypto trades constituting 10% of all trades on the platform. This uptick in crypto CFD trading can be largely attributed to several key factors including the approval of Bitcoin exchange-traded funds (ETFs) in the United States, heightened market volatility, and improved price stability within the cryptocurrency sector.
Axi’s offering of a maximum leverage of 200:1 on its crypto CFDs has also contributed to the allure of trading these instruments, enabling traders to amplify their exposure to market movements with a relatively small capital outlay. Interestingly, the platform now boasts more active traders in crypto CFDs than in traditional instruments like Index CFDs and Futures, highlighting a shift in trader preference towards the crypto space.
The data indicates that a significant portion of the growth in crypto CFD trading at Axi has come from existing clients who have pivoted towards these instruments, drawn by the potential for high returns amidst the volatility and momentum characteristic of the crypto markets. Louis Cooper, Chief Commercial Officer at Axi, remarked on the trend, stating, “We saw a pretty decent amount of crypto volume growth month-on-month from January and a huge increase in the last five or six months.”
This surge is also happening in anticipation of events such as Bitcoin’s halving, which tends to have a profound impact on Bitcoin’s value and, by extension, trading strategies around BTC-USD pairs. Axi’s success in capturing a significant share of the market’s interest in crypto CFDs is indicative of both the platform’s robust offering and the shifting dynamics of the financial trading landscape, where digital assets are increasingly seen as essential components of a diversified investment portfolio.
