EQUOS has introduced a Bitcoin perpetual futures contract, possibly setting the stage for wider professional adoption of digital assets.
EQUOS, a Singapore-based digital currency exchange operated by Diginex, has announced the launch of a new Bitcoin futures product (BTC) with no settlement date, marking a substantial jump in the BTC derivatives market.
The company on Thursday introduced the BTC perpetual futures contract, a product it says is well suited to the current trading environment. The perpetual contract is aimed at professional traders with various risk profiles, with prices and liquidity provided by independent market makers.
The exchange claims that its new Bitcoin Aussie Secret contract is backed by its liquidity reserves, which are partially funded through commissions and trading revenues.
Unlike traditional futures products, a perpetual futures contract does not have a fixed expiration or settlement date, which means that the user can hold the position for as long as they wish. BitMEX, one of the most important crypto-derivative platforms, currently offers perpetual contracts on Bitcoin.
Diginex CEO Richard Byworth said the new futures contract is intended to provide broader functionality to the crypto-derivative market, a move he said „will facilitate wider adoption of crypto assets by institutional and professional traders.
„This is just the first in a suite of products that will offer investors more dynamic hedging tools, fairer settlement, a platform that does not trade against its users, and reputation protection for investors seeking a KYC/AML compliant ecosystem.
The Bitcoin futures market has skyrocketed in recent quarters, highlighting the growing institutional acceptance of digital assets. EQUOS claims that crypto-derivatives grew at more than four times the pace of the spot market in Q3 2020, reaching a daily high of $67 billion by the end of November.