Nasdaq-listed financial firm Eqonex has launched a new type of Bitcoin (BTC) investment product, a BTC-dated futures contract.
Eqonex announced on Wednesday, explaining that their bitcoin futures contracts are denominated in the US stablecoin (USDC) and are rising in parallel with the price of BTC against the USDC.
Eqonex notes that unlike perpetual futures contracts, which do not have a fixed maturity date, dated futures contracts expire on a predetermined date and time period, such as monthly or quarterly. “Any position in the eternal future remains open until the trader decides to close the position by executing the clearing deal, or until the transaction is liquidated by Aconex,” the company added.
According to the announcement, the Eqonex BTC futures contract will expire at 08:00 UTC on the last Friday of the expiration month, with an automatic physical settlement on the expiration date. Users can trade the new BTC futures contract with influence.
Eqonex also expects to offer dated futures contracts for other cryptocurrencies, including Ether (ETH), “in the coming months.”
Andrew Eldon, Acting CEO of Eqonex, noted that “there remains a gap in the stock market to better serve traders who are looking for secure access to traditional financial products and strategies to exploit and hedge the volatility of cryptocurrency trading.”
“We are removing barriers to entry by providing a regulated exchange of cryptocurrencies and adding institutional quality products to our clients’ toolboxes,” Eldon said.
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The news comes shortly after Eqonex announced that it is in strategic discussions with third parties, including evaluating merger or acquisition options in December 2021. The news comes as the company has appointed Eldon as interim CEO and replaced former CEO Richard Byworth. .