Good news for all bitcoin investors! A bitcoin currency exchange company based inSingapore named Equos has confirmed that it is going to launch new bitcoin futures. The best part about this news is that the fitcoin futures will be launched without any settlement date or an expiry date. This news is certainly a big leapin the Bitcoin derivative market. Before we delve deeper into this topic, let’s try to understand what bitcoin futures mean.
What are bitcoin futures?
The best part about bitcoin futures is that it enables investors to get enough exposure to bitcoins without having the need to hold the underlying cryptocurrency. Just like other future contracts for future or stock index, bitcoins will enable the investors to speculate the future price of bitcoins. There are lots of benefits of trading bitcoin futures like the contracts are traded on an exchange that are regulated by the commodity futures trading commissions. Because of the presence of large institutional investors there is certain confidence to participate.
Equos introduced the Bitcoin futures contract last Thursday and as it is said, the product is well suited to the current trading environment. The best part about this future contract is that it is aimed towards professionals traders who have different risk profiles. Professionals also have the benefits and liquidity as provided by independent market makers.
As per the claims made by exchange, the new Bitcoin future contract is backstopped by the presence of liquidity reserves, and these are partially funded through fees and trading revenues.
If you compare the bitcoin futures contracts with traditional futures products, the best part is that the BTC futures contract doesn’t have a fixed settlement date. This means that the users can hold the position for as long as they can. The future contacts on bitcoin are offered by BitMEX which is one of the best crypto derivative platforms.
As per Richard Byworth, who is the CEO of Diginex, the new BTC future contracts will bring wider functionality to the crypto market. As per the views of the CEO, the use of BTC futures will offer wider institutional and professional trader adoptions of crypto assets.
Richard Byworth also explained that this is just the first step in the final product suite. In the future, the new concept will offer investors with more dynamic tools, fair liquidation, and also secure, and KYC compliant ecosystem.
Over the past few years, the bitcoin futures market has exploded widely. Thus, it shows the importance of growing uptake by digital assets.