Cointelegraph Team
Cointelegraph
Cryptocurrency exchange BitMEX announced a new Ether (ETH)-based futures contract on its trading platform.
According to an April 24 announcement, the new derivative contract will feature a fixed Bitcoin (BTC) multiplier which will be unaffected by the Ether price in U.S. dollars. 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.”
The exchange plans to launch the ETHUSD futures contracts with a maximum leverage of 50x on May 5, 2020. The firm promises that the “new product will be the only one of its kind available in the market.”
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.
BitMEX losing ground to competitors
BitMEX is well-known by old-school Bitcoin derivatives traders, as the platform used to be the most widely used for trading these kinds of contracts. However, as Cointelegraph reported earlier this week, BitMEX is continuing to lose derivatives trading market share to Binance Futures.
A mid-April data analysis shows that BitMEX has been bleeding Bitcoins since Black Thursday. This seemingly suggests that traders lost faith in the platform after it malfunctioned during the major market downturn, with some believing that it was — in fact — purposeful market manipulation on the exchange’s part.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.
Recommended Content
Editors’ Picks
Bitcoin miner Marathon Digital stock gains ground after listing by S&P Global
Following Bitcoin miner Marathon Digital's inclusion as an upcoming member of the S&P SmallCap 600, the company's stock received an 18% boost, accompanied by an $800 million rise in market cap.
Ethereum traders show uncertainty, SEC delays decision on Invesco's ETH ETF application
Ethereum holdings on centralized exchanges continue to decline despite recent whale sales. With the SEC delaying its decision on Invesco's spot ETH ETF application, Ethereum ETFs look more unlikely.
TON crosses $200 million in Total Value Locked as its network integration continues to scale
In a recent development, the TON network surpassed $200 million in total value locked (TVL) on Monday after seeing a major boost through The Open League reward program.
Grayscale GBTC sees second straight trading session of inflows at almost $4 million
After around 77 days of outflows, the Grayscale Bitcoin Trust (GBTC) first recorded its first trading session of inflows on Friday. Experts have confirmed that the change of fortune continues, with the GBTC clocking in a successive positive trading session on Monday.
Bitcoin: Should you buy BTC here? Premium
Bitcoin (BTC) price shows signs of a potential reversal but lacks confirmation, which has divided the investor community into two – those who are buying the dips and those who are expecting a further correction.