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Macro economist Luke Gromen said expanding cash-settled derivatives tied to Bitcoin could limit BTC price gains. Gromen said a key issue is the shift in Bitcoin’s long-term returns, noting that the annualized growth rate between cycle peaks fell sharply across the two market cycles following the arrival of cash-settled BTC derivatives. He said derivatives let investors gain leveraged Bitcoin exposure without buying spot BTC, and as the derivatives market grows, more of the trading that sets Bitcoin’s price could take place outside the spot market where actual BTC changes hands. With returns declining as cycles repeat, Gromen said it is difficult to expect that trend to reverse naturally if the cash-settled market continues to expand.