To mature fully, crypto must develop regulated derivatives, which institutions increasingly demand. While there are a growing number of regulated offerings, most trading occurs in lightly regulated offshore venues, exposing investors to risks like market manipulation. Institutions require compliance and security, pushing exchanges towards regulated derivatives, especially in Europe. The shift from spot markets to derivatives in other asset classes suggests similar potential in crypto, enhancing risk management and capital efficiency. However, compliance is crucial as regulatory bodies are tightening standards. Custodians must merge secure crypto asset storage with traditional compliance standards, nurturing institutional confidence. Past mistakes emphasize the need for trustworthy venues that ensure proper licensing and compliance practices. A balanced ecosystem of spot and derivatives trading can foster a secure environment for broader participation in the crypto market, necessitating priority on regulated products and secure custody as 2025 approaches.

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