BitMEX Launches A New Ether-Based Futures Contract On Its Trading Platform
BitMEX Launches A New Ether-Based Futures Contract On Its Trading Platform
April 25, 2020
BitMEX Launches A New Ether-Based Futures Contract On Its Trading Platform
BitMEX Launches A New Ether-Based Futures Contract On Its Trading Platform
April 25, 2020

BitMEX, the cryptocurrency exchange, has launched a new Ether-based futures contract on its trading platform.

On April 24, it has been reported in an announcement that the new derivative contract will feature a fixed Bitcoin multiplier, which will be unaffected by the Ether price in US dollars.

However, BitMEX explains that this feature allows traders to long or short Ether’s USD exchange rate without holding either ETH or dollars.

The announcement explains:

“Traders post margin in XBT [Bitcoin], and earn or lose Bitcoin as the ETH/USD rate changes.”

It has been analyzed that the exchange plans to launch the ETHUSD futures contracts with a maximum leverage of 50x on May 5, 2020, as the firm promises that the “new product will be the only one of its kind available in the market.” 

Likewise, the new BitMEX derivative contract combines the Quanto feature of the exchange’s ETHUSD perpetual swap contract with the expiry and settlement of traditional futures contracts. The contract expires quarterly, just like the firm’s altcoin futures contract.

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As per the report, BitMEX is continuing to lose derivatives trading market share to Binance Futures.

It has also been analyzed that BitMEX may be betting that the new contract may help the exchange to regain some of its lost popularity among cryptocurrency derivative traders.

Thus, A BitMEX spokesperson said:

“We anticipate that our new ETHUSD quanto futures contract product will be popular amongst BitMEX users from launch on May 5, and we’re encouraged by the positive reaction we’ve received from the market already, pre-launch.”

Source: Cointelegraph | Image: Pixabay


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Ishita Bora

Ishita Bora is a Senior Content Creator at Digital Notice Media Labs with an experience of 1 year. She has completed her Master's Degree in Language and Linguistics in 2019 from Gauhati University, India. Her interest lies in blockchain technology and cryptocurrency space, as she loves writing about blockchain and other blockchain-related articles. Currently, she is working on blockchain-based news, reviews, featured articles, and guides.