On January 21, the derivatives exchange by Matrixport, Bit.com, announced the launch of the first bitcoin cash flat swaps and options. The exchange said before the product launch that there was no options market for bitcoin cash and the company believes there is room for improvement in this arena of crypto derivatives.
Bit.com to Launch Crypto Economy First Bitcoin Cash Options Market
Bit.com, one of the leading derivatives trading platforms developed by Matrixport, has unveiled the exchange plans to launch bitcoin (BCH) cash swaps and flat options. The exchange detailed that Bit.com will roll out the flat swaps product on January 20 and the BCH options trading will begin on February 1st.
The announcement notes that BCH is a large crypto-asset “recognized by institutions,” and remains in the top ten positions among major crypto market capitalizations.
News.Bitcoin.com recently reported on Bit.com as one of the most open exchanges of interest regarding BTC and ETH options. The BCH options announcement Bit.com notes that bitcoin (BTC) and ethereum (ETH) derivatives markets “have grown tremendously in the past few years.”
“BTC currently dominates the cryptocurrency flat exchange market, accounting for ~ 53% of market share, while ETH attributes it to 20%,” said Bit.com. “BCH takes only 1% of the crypto flat exchange market share, which is disproportionate to the relative market share of the underlying asset.”
The exchange further added:
Similar [to the] options market, [the] the market is highly dominated by BTC (accounts for ~ 90%) while ETH takes the rest, the options market for other large crypto and / or altcoins is close to nil exist. In short, BCH’s derivative market is far from maturity relative to its size and underlying price volatility. With the launch of Bit.com products, this gap in the market will soon be filled.
Crypto Options Open Interest Surges
Bit.com is based in Singapore and the trading platform initially launched its BTC and ETH flat swaps and options back in August 2020. The company says that during the first fifties, the trading platform’s volume exceeded $ 6 billion. In the past two weeks, crypto derivatives swaps have seen BTC and ETH Options always open interest tap. The exchange believes that bitcoin’s cash options and BCH’s flat swaps will add to this volume.
“The launch of BCH derivatives by Bit.com enables miners to hedge against risks associated with BCH volatility, which helps make their operation more stable and efficient,” the exchange detailed. “More specifically, miners can lock up profits in generating additional cash flow from selling indoor calls; or they can hedge downward price movements by buying defensive posts. Consumers can use comprehensive derivative trading strategies made possible by continuous exchange and an options market to build diverse payment profiles to best serve their interests. “
In recent weeks, Bit.com has seen anywhere between $ 100 and $ 200 million in crypto derivatives trade volume.
What do you think of the Bit.com exchange in Singapore that launches bitcoin cash swap swaps and options? Let us know what you think of this topic in the comments section below.
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