Ethereum Derivatives

Definition ∞ Ethereum Derivatives are financial instruments whose value is derived from the price of Ethereum, the native cryptocurrency of the Ethereum blockchain. These include futures, options, and perpetual swaps, allowing participants to speculate on future price movements without directly owning the underlying asset. They offer mechanisms for hedging existing positions or amplifying exposure to price changes. These instruments are traded on various centralized and decentralized platforms.
Context ∞ News concerning Ethereum Derivatives often focuses on their increasing volume, open interest, and their impact on Ethereum’s spot market price discovery. Regulatory bodies are examining these products closely to determine appropriate oversight frameworks, particularly concerning investor protection and market manipulation. The expansion of Ethereum Derivatives markets indicates growing institutional interest and increased sophistication within the digital asset financial ecosystem.