Cryptocurrency Futures

Definition ∞ Cryptocurrency futures are financial derivative contracts obligating parties to transact a specific cryptocurrency at a predetermined future date and price. These contracts do not involve the direct exchange of the underlying digital asset at the time of agreement. They serve as tools for speculation on future price movements or for hedging existing spot market positions.
Context ∞ Cryptocurrency futures are a prominent topic in digital asset news, particularly concerning market volatility and price discovery. The availability of these derivatives on regulated exchanges like CME Group provides institutional investors with exposure to crypto without direct asset custody. Analyzing futures market data, such as open interest and funding rates, helps gauge market sentiment and potential price shifts.