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Odaily Planet Daily News: BlackRock CEO Fink said that Bitcoin can overcome concerns about the instability of the local currency. (Golden Ten)

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Kingdom Holding, the investment firm of Saudi Arabian Prince Alwaleed Bin Talal, won’t invest in cryptocurrency in the near future because it has not been adopted as a payment method for goods and services, CEO Talal Ibrahim al-Maiman said, Reuters reported.The prince, a senior member of the Saudi royal family is known for his Warren Buffett-style value investing approach and, like him, has consistently shunned crypto. The company's estimated $13.6 billion in assets are held in a diversified portfolio that includes holdings in finance, hospitality, health care, media, technology and real estate companies."We support Mr. Buffet's theory that you don't buy with, don't invest in, so as we cannot buy any goods with cryptocurrencies, therefore we are currently not looking into investing in them," Al-Maiman said on the sidelines of the World Economic Forum in Davos, according to Reuters.Rumors on social media have for long suggested that the Saudi royal family would invest in cryptocurrencies, and the recently improved U.S. regulatory outlook given President Donald Trump’s pro-crypto stance was seen as a catalyst for that investment. Al-Waleed’s public comments on bitcoin reflect the company’s crypto concerns. In 2017, the Saudi prince said he believes the cryptocurrency is “just going to implode one day.”

For crypto to mature fully, regulated derivatives are non-negotiable.Derivatives already comprise 70-75% of crypto transaction volumes, with institutional players leading the charge. While there is a growing number of regulated offerings, the majority of the volume – about 95% – happens in “offshore” venues, meaning in unregulated or lightly regulated jurisdictions. This exposes investors to risks like market manipulation and fraud, and leaves consumers with a lack of protections.Luckily, there are a growing number of pathways, particularly in Europe, for crypto exchanges to meet the demands of risk-averse institutional investors whose primary concern is compliance, security and regulation.Historically, spot markets have served as foundational liquidity sources and initial price discovery venues. As markets mature, derivatives markets often take the lead by incorporating broader information and future expectations. This transition has already been observed in commodities and equities markets globally, signaling a shift towards more advanced trading strategies — a key indicator of a maturing market.Similarly, in the crypto space, for a mature and balanced crypto market, it is imperative to have access to both spot and derivatives trading. Futures and options will play — and have always played — an essential role in managing risk, hedging and enhancing capital efficiency. They are crucial for attracting sustained institutional participation, allowing capital efficiency and affording a wide array of trading strategies.However, only regulated exchanges will be able to provide the security and compliance essential for large financial clients. For crypto exchanges to offer E.U.-regulated crypto derivatives like perpetual swaps, getting a MiFID license is a must. There’s no doubt about the growing demand for derivatives — about $3 trillion. MiFID brings the clarity and protections that crypto markets desperately need, giving us oversight that aligns with traditional financial services. This boosts market integrity and helps curb fraud.Regulated exchanges can attract a wider range of institutional clients with demand for crypto derivatives. And they can become sources of innovation. The growing appetite for sophisticated products like perpetual swaps reflects the maturation of trading strategies, provided they come with oversight. Effectively leveraging these tools is critical to promoting market integrity and creating sustainable yield opportunities.As we have seen in 2024, hedge funds and family offices are diversifying beyond Bitcoin and Ether, increasingly focusing on stablecoins, derivatives and emerging products. These players know that all markets have volatility, and trading comes with inherent risks – and crypto is no different. Rapid market shifts can quickly transform profitable positions into losses. Derivatives, in general, carry more inherent risk than spot markets due to factors like leverage and complexity, as their value is derived from underlying assets.Access alone is insufficient. While regulated exchanges offer compliant crypto derivative products, they cannot shield traders from potential losses. They can only provide defenses against risky practices, abuses and bad actors.Compliance is the next essential piece of the decentralized, cross-border landscape of crypto, where regulatory gaps can amplify risks. Regulatory bodies in reputable jurisdictions are implementing stricter standards for platforms offering crypto derivatives, requiring exchanges to register, maintain sufficient capital, and adopt robust anti-money laundering (AML) and know-your-customer (KYC) practices.Custody has matured the most since the last bull run in terms of compliance.Institutions need custodians that combine technical expertise in securely holding crypto assets with rigorous compliance akin to traditional asset management. Leading custodians bridge this gap through secure storage, operational transparency, and robust safeguards, thereby reducing risks associated with hacks or technical failures.The result has been institutions are gaining confidence in the crypto market now that regulated custodians can align with their operational standards.The industry must learn from past mistakes. Focusing solely on venues for liquidity that lack adequate licensing in reputable jurisdictions, developed compliance practices and other trust factors can lead to disastrous consequences. Web pages about “Proof of Reserves” mean nothing without other safeguards in place. Global financial audits (preferably from a Big 4 accounting firm), ISO and SOC2 designations are exceedingly important for both institutional and retail users to consider and prioritize when they choose a crypto platform or partner.Today’s institutional players seek a marketplace that effectively balances spot liquidity with derivatives for risk management and capital efficiency. The complementary roles of spot and derivatives markets can create a stable and growing crypto ecosystem where transparency, security, and compliance facilitate broader participation.Therefore, exchanges must prioritize regulated products and secure custody if they want to offer comprehensive trading options for institutional investors moving into 2025.

The current price difference between OKX BTC spot and quarterly delivery contracts has exceeded 5700 USDT, with an annualized return of over 12% for futures and spot arbitrage. It is very suitable for large funds to earn stable appreciation through price differences. With the help of AiCoin's futures and cash arbitrage tool: the robot automatically completes the two leg arbitrage opening, easily earning low-risk and considerable returns, suitable for both large and small funds, without worrying about market fluctuations! Futures and spot arbitrage strategy: 1. Spot price<contract price: Buy spot, short contract, close position for profit when the price difference returns. 2. Spot price>contract price: Sell spot goods, multiple contracts, and use the price difference to earn profits. The above content is for reference only. Please make investment decisions based on your own situation!