Crypto’s center of gravity has officially moved. Cboe Global Markets published a report titled “Beyond ETFs: How Derivatives & Tokenization Are Reshaping Crypto,” and the headline number is hard to ignore: derivatives notional volume hit $111.5 trillion in 2025, compared to just $25.3 trillion in spot trading.

That’s a 4.4x ratio. For context, the derivatives-to-spot ratio was 3.5x back in 2023. The gap isn’t just widening, it’s accelerating.

Derivatives are the new front door

Cboe’s research traces this shift back to a specific catalyst: the approval of spot Bitcoin and Ether ETFs in 2024. Those approvals didn’t just give institutions a convenient on-ramp to crypto exposure. They created a downstream effect that turbocharged demand for hedging tools, basis trades, and structured products built around those very ETFs.

The report highlights that Cboe launched continuous futures on December 15, 2025, a product specifically designed to bridge the gap between crypto-native trading and the kind of infrastructure institutional desks expect. Post-ETF approval, trading activity on Cboe’s platforms climbed meaningfully.

Regulated venues are punching above their weight

One of the more interesting findings in the report involves where this derivatives activity is happening. Regulated venues, think Cboe and CME rather than offshore perpetual swap platforms, account for a disproportionate share of open interest in derivatives.

Their turnover rates are lower, though. That’s not a weakness. It’s actually a signature of institutional behavior.

Retail traders on crypto-native platforms tend to open and close positions rapidly, generating high turnover. Institutional players on regulated platforms hold positions longer, often as part of broader hedging strategies or structured trades.

Tokenization is the next chapter

The report doesn’t stop at derivatives. Cboe identifies tokenization as a critical area for future growth, and the logic connecting the two is straightforward.

Right now, posting collateral for derivatives trades involves moving traditional assets through legacy settlement systems. Tokenized assets, real-world assets represented as blockchain tokens, could change that equation entirely. Imagine posting tokenized Treasury bills as collateral for a Bitcoin options position, with settlement happening on-chain in near real-time.

Cboe’s report frames tokenization and derivatives not as separate narratives but as two parts of the same story about how traditional finance absorbs and reshapes the crypto market.

What this means for investors

When derivatives lead price discovery, funding rates, basis spreads, and options skew become more important signals than order book depth on spot exchanges.

The growing dominance of regulated venues also suggests that regulatory clarity, or the lack of it, will have an outsized impact on market structure going forward. If institutions are concentrating their activity on platforms with clear regulatory frameworks, then any policy shifts affecting those venues could ripple through the entire crypto market more dramatically than a change to some offshore exchange’s listing policy.

The derivatives-to-spot ratio jumping from 3.5x to 4.4x in just two years tells us something about velocity, too. For portfolio construction, the takeaway is that simple spot exposure through ETFs is increasingly just the starting point. The institutions driving volume growth are using options, futures, and structured products to fine-tune their risk profiles.