Cryptocurrency Future

Definition ∞ Cryptocurrency Future refers to a financial derivative contract that obligates parties to trade a specified cryptocurrency at a predetermined price on a future date. These instruments allow market participants to speculate on price movements or hedge against potential losses without holding the underlying digital asset. They are commonly traded on regulated exchanges. Futures contracts provide important price discovery mechanisms.
Context ∞ The introduction and trading volume of cryptocurrency futures contracts are closely watched in financial news, as they provide insights into institutional interest and market liquidity. Regulatory approvals for such products, particularly in major financial jurisdictions, often signal increasing mainstream acceptance of digital assets. The open interest in these futures can also indicate potential market trends.