On January 21, Matrixport’s futures exchange, Bit.com, announced the launch of the first Bitcoin cash perpetual swaps and options. According to the exchange, there was no bitcoin cash options market prior to the product launch, and the company believes there is room for improvement in this area of crypto derivatives.
Bit.com Launches Crypto Economy First Bitcoin Cash Options Market
Bit.com, one of the leading derivatives trading platforms developed by Matrixport, has announced the exchange plans for the introduction of bitcoin cash (BCH) Perpetual swaps and options. The exchange announced that Bit.com will launch the perpetual swap product on January 20th and January 20th BCH Options trading begins on February 1st.
The announcement states that BCH is a major crypto asset that is “Institutional Approved” and remains in the top ten of the leading crypto market caps.
News.Bitcoin.com recently reported on Bit.com as one of the exchanges with the most open interest in terms of BTC and ETH Options. Bit.com BCH Options announcement details that both Bitcoin (BTC) and Ethereum (ETH) Derivatives markets “have grown enormously in recent years”.
“The market for perpetual swaps for cryptocurrencies is currently dominated BTC, which accounts for ~ 53% of the market share while ETH Attributes to 20%, ”said Bit.com. “BCH occupies only 1% of the market share of Crypto Perpetual Swap, which is disproportionate to the relative market share of the underlying asset. “
The exchange added:
Similar [to the] Options market, [the] Market is strongly dominated by BTC (accounts for ~ 90%) during ETH picks up the rest, the options market for other important crypto and / or altcoins is almost non-existent. In short, the BCH The derivatives market is still a long way from maturity compared to its size and underlying price volatility. The launch of Bit.com will soon fill this gap in the market.
Crypto Options Open Interest Surges
Bit.com is based in Singapore and the trading platform has its own BTC and ETH Perpetual swaps and options in August 2020. The company says the volume of the trading platform exceeded $ 6 billion in the first five months. The past two weeks have seen crypto derivatives exchanges BTC and ETH options Open Interest tap all-time records. The exchange is thinking of Bitcoin cash options and BCH Perpetual swaps increase this volume.
“The start of BCH Bit.com derivatives allow miners to hedge against the risks involved BCH Volatility that helps make your operations more stable and efficient, ”explained the exchange. “In particular, miners can secure profits upfront while generating additional cash flow by selling covered calls. or can hedge against downward price movements by buying protective puts. Users can take advantage of comprehensive derivatives trading strategies enabled by the Liquid Perpetual Swap and Options Market to create various payout profiles that best suit their interests. “
Over the past few weeks, Bit.com has seen trading volumes of $ 100 million to $ 200 million in crypto derivatives.
What do you think of the Singapore-based exchange Bit.com, which is introducing perpetual swaps and options on bitcoin cash? Let us know what you think on this matter in the comments section below.
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