Bitcoin Coin-Margin Futures Share Drops to 12% from 70% in 2021

The proportion of Bitcoin (BTC) futures contracts that use Bitcoin itself as collateral has decreased from about 70% at the start of 2021 to roughly 12% by mid-2026. This decline reflects a significant reduction in the share of coin-margin structures, where both position losses and collateral value declines can occur simultaneously.

Crypto Briefing reported that Glassnode data shows the proportion of coin-margin futures contracts has fallen to approximately 12%, though the exact date of this measurement was not disclosed. Coin-margin contracts use the same asset as collateral for the underlying trade. When Bitcoin prices fall, both position losses and collateral value can decline together, potentially leading to liquidation if margin requirements are not met.

These liquidations can trigger further selling pressure that drives prices down and causes additional liquidations in a cascading effect. Glassnode's metric shows the percentage of futures contracts using the underlying asset as collateral relative to the total market. The data is presented in Glassnode's derivatives report.

The coin-margin contract share has continued declining after falling below 20% by mid-2024, showing a significant shift from the 2021 structure of Bitcoin futures markets. As a result, major futures markets have increasingly adopted dollar-linked assets like Tether (USDT) and USDC as collateral instead of Bitcoin itself.

For example, Binance explains that COIN-M contracts settle in cryptocurrency while USDⓈ-M contracts settle in USDT or USDC. The USDⓈ-margin structure decouples the Bitcoin price from collateral value, potentially reducing some risks associated with direct correlation during price declines. However, a lower coin-margin share does not eliminate leverage risk entirely; price volatility can still lead to margin shortages and forced liquidations.

The 12% figure should be interpreted within Glassnode's metric range. CME Bitcoin futures are excluded from this coin-margin metric, so the data cannot be generalized across all Bitcoin futures markets. As collateral shifts toward dollar-linked assets, risk structures may change as well. IMF research has highlighted how stablecoin redemptions could trigger asset sales and price declines in a feedback loop.

Domestic investors should distinguish between exchanges' collateral assets and monitor open interest and liquidation volumes. While coin-margin and USDⓈ-margin contracts belong to the same product category, their response to price fluctuations differs significantly. Earlier reporting by this publication noted increasing dominance of options and perpetual futures over time-based futures in Bitcoin derivatives markets.