Crypto derivatives exchange BitMEX is launching new ETH/USD futures called ETHUSD Quanto Futures

By Selena On Apr 24, 2020

BitMEX announced a new kind of futures product, which will boost more trading options on the exchange. According to a report today, the company is seeking to launch an ETHUSD Quanto Futures.

Borrowing the definition from Investment and Finance, Quanto futures in a stock market is:

“A cross-currency, cash-settled futures contract which has an underlying denominated in one currency and is settled in another currency at a fixed exchange rate. For example, a futures contract on a Japanese stock market index which is settled in U.S. dollars.”

We will be bringing another new product to our platform with the launch of an ETHUSD quanto futures contract on 05 May 2020. More details on our blog: https://t.co/1LgME2IfA6 pic.twitter.com/elHFv5iyst

— BitMEX (@BitMEXdotcom) April 24, 2020

BitMEX is launching new Ether/USD futures called ETHUSD Quanto Futures

Essentially, this is an ETH-USD margin trading product and is reported to launch on May 5 with offer leverage of up to 50 times and require margin to be posted in Bitcoin.

These futures have a fixed Bitcoin multiplier of 0.000001 BTC per $ 1, meaning for each $ 1 move, the contract pays out 0.000001 BTC regardless of the dollar price of ETH. This allows traders to go long or short the ETH/USD exchange rate without ever touching ETH or USD.

To put it more explicitly, the new ETH-USD margin trading products will allow cryptocurrency traders to predict the price performance in the near future of Ether.

Traders stake on ETH-USD margin trading products

For traders who think Ether’s future value will increase, they will extend or buy new Quanto futures, while others speculate that the value will decline in the near future, possibly. sold out or shortened them. Interestingly, ETH-USD margin trading products can allow traders to shorten and lengthen them without touching their U.S. dollars or Ether.

The new product from BitMEX will be the first to be available in the entire crypto derivatives market, once it is launched, the company said. This is also a move to increase its dominance in the market even further. Meanwhile, the first ETH-USD margin trading contract on BitMEX will expire in June.

Besides new future products, BitMEX has provided future as well as future products on Ether. This supposedly latest product is coming soon as the company faces a liquidation, starting after a major market crash, witnessing Bitcoin lose about 50% of its value in a day.

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