Bloomberg interviews crypto market maker Wintermute: Considering launching a derivatives exchange
Bloomberg interviewed market makers in the cryptocurrency space, with Wintermute revealing the most. In addition to mentioning their business involving MEV arbitrage, they also stated that they are considering launching a cryptocurrency derivatives exchange.
Table of Contents
Bear Market Low Liquidity Making Market Makers Miserable?
Bloomberg highlighted the sluggish crypto market post-FTX crash, where in the absence of trading volume and volatility, generating profits has become a daunting task for market makers.
Richard Galvin, founder of an asset management firm, stated:
This year has been extremely challenging for market makers due to plummeting trading volumes, uncertainties in multiple jurisdictions, but if the recent rebound trend can persist, market makers' profits are also expected to increase.
Wintermute's Daily Trading Volume Below 30% of Bull Market
Co-founder Evgeny Gaevoy shared Wintermute's current situation in an interview with Bloomberg:
Wintermute has been consistently profitable.
Actively diversifying its business to prepare for another bull market cycle.
Daily trading volume ranges from $20 billion to $30 billion, significantly lower than the $75 billion during the 2021 bull market.
Wintermute Co-founder: Contemplating Launching Derivatives Exchange
Evgeny Gaevoy mentioned several projects in Wintermute's pipeline:
An inactive lending project.
Considering launching a crypto derivatives exchange.
Dedicated to introducing a cryptocurrency-related index.
- Plans to increase staff by 10% in the next 2 to 6 months.
Evgeny Gaevoy stated that timelines are uncertain, and he also revealed Wintermute's involvement in Ethereum validation, which allows them to gain advantages in on-chain arbitrage and trading.
Bloomberg attempted to contact other market makers: Cumberland DRW, GSR Markets, Jump Crypto, Flow Traders, Auros, Portofino Technologies.
However, they did not receive many responses.