Equos, a Singapore-based cryptocurrency exchange run by Diginex, has announced the launch of a new Bitcoin Futures (BTC) product with no settlement dates, marking a major jump in the BTC derivatives market.
On Thursday, the company unveiled a permanent BTC futures contract, a product it says is “well suited to today’s trading environment”. The perpetual contract is intended for professional traders with a number of risk profiles, and pricing and liquidity are provided by independent market participants.
Oslo Burrs claims that the new BTC contract is backed by liquidity reserves that are partly funded by fees and trading revenue.
Unlike traditional futures products, the perpetual futures contract does not have an expiration date or a specific settlement date, which means that the user can hold the position for as long as they wish. BitMEX currently offers Bitcoin perpetual contracts, and it is one of the largest platforms for cryptocurrency derivatives.
The purpose of the new futures contract is to create more jobs in the cryptocurrency derivatives market, said Richard Beworth, chief executive of Diginex, and said the move “will facilitate the wider adoption of cryptocurrencies by institutional and professional traders.”
“This is only the first product in the group that will provide investors with more dynamic hedging tools, a more equitable settlement, a platform that is not easy to use, and reputation protection for investors who want a KYC / AML compliant ecosystem.”
The Bitcoin futures market has risen sharply in recent quarters, indicating an increasing institutional use of the digital asset. Equos said cryptocurrency derivatives grew four times faster than the spot market in the third quarter, and peaked at $ 67 billion in daily volume at the end of November.