BCH options trading on February 01, 2021 after BCH perpetual swaps January 20, 2021
SINGAPORE, Jan. 20, 2021 - (ACN Newswire) - Bit.com, Matrixport's high-performance, secure derivatives exchange, will launch perpetual Bitcoin Cash (BCH) swaps and options. BCH options trading will go live on February 01, 2021, after the launch of BCH perpetual swaps on January 20, 2021.
Bit.com's Bitcoin Cash options offering is the first of its kind in the industry. Bitcoin Cash has been in the limelight as one of the leading cryptocurrencies recognized by institutions, and consistently ranks # 6 or 7 in the Top 10. However, there has been no Option market for BCH and the liquidity of perpetual swaps can also be improved.
To put it in perspective, the Bitcoin (BTC) and Ethereum (ETH) derivatives market has grown significantly over the past few years, as have their relative shares of the underlying spot trading volume. Currently, the cryptocurrency perpetual swap market is dominated by BTC, which accounts for
53% of the market share, while ETH attributes it to 20%. BCH takes only 1% of the perpetual crypto exchange market share, which is disproportionate to the relative market share of the underlying asset. Similar to the options market, the market is extremely dominated by BTC (accounts for 90%) while ETH takes the rest, the options market for other major crypto and / or altcoins is almost nonexistent. In short, the BCH derivatives market is far from its maturity relative to its size and the volatility of the underlying prices. With the launch of the Bit.com product, this gap in the market will soon be filled.
Bit.com is an institutional-grade derivatives exchange launched by Matrixport, a one-stop-shop financial services company based in Singapore. Since its inception in August 2020, Bit.com has launched BTC and ETH perpetual options and swaps, which are very well received and actively traded by institutional and individual users. In the first five months of its launch, Bit.com's total transaction volume has exceeded $ 6 billion and is poised to take more market share. At present, the exchange registers between $ 100 and $ 200 million in trading volume on a daily basis.
With cutting edge technology, security, and risk management, Bit.com aims to provide users with a superior trading experience and best-in-class liquidity. The platform has strategically positioned itself to serve both institutional and individual users around the world including miners / hedgers, blue chip brokers, owner traders, and hedge funds. This diverse customer base enables Bit.com to provide more efficient and representative price discovery, which ensures the most competitive spreads. In terms of security, Bit.com's system is built by a world-class team of risk management and IT experts. In addition,
With its top notch product offerings and performance, Bit.com has been recognized as one of the top cryptocurrency derivatives exchanges. According to data from Skew, Bit.com is the second largest cryptocurrency options exchange in the world by revenue and open interest.
Why did Bit.com decide to enter the BCH derivatives market?
As one of the leading cryptocurrencies widely traded by institutions, Bitcoin Cash has good potential and huge market demands. Not only does BCH rank among the top 10 cryptos in terms of market capitalization, but the number of active addresses has also increased over time. Most importantly, Bitcoin Cash is one of the major proof-of-work coins with widespread support from miners. Minors, on the other hand, are a key part of Bit.com's customer base. Bit.com's launch of BCH derivatives allows miners to hedge against the risks associated with BCH volatility, which helps make their operation more stable and efficient. Specifically, minors can lock in profits at advance while generating additional cash flow by selling covered calls; or can protect against downward price movements by buying protective put options. Users can use comprehensive derivative trading strategies made possible by liquid perpetual swaps and the options market to create various compensation profiles to better serve their interests.
Being the first to launch the product will help Bit.com gain a competitive position in this blue ocean market. The current cryptocurrency derivatives market is far from saturated and has great growth potential in the years to come, we will continue to see the list of new pairs and improved liquidity leading to a new one. market expansion. As trading platforms catch up, Bit.com provides unique value by creating active BCH derivatives markets on top of current BTC and ETH markets and adding real users to the game.
Very well said