Huobi Futures has introduced the upcoming launch of Bitcoin Options buying and selling, which can go stay on September 1st at 10:00 UTC. According to a weblog submit saying the launch, the BTC choices will probably be quoted in USDT and supplied in weekly, bi-weekly, and quarterly increments.
The weblog submit additionally says that the brand new product “aims to give traders more ways to create arbitrage and hedge risk in the crypto market.” This is as a result of choices merchandise provide merchants the best, however not the requirement to purchase or promote BTC at an agreed-upon worth and time.
The Most Diverse Audience to Date at FMLS 2020 – Where Finance Meets Innovation
The Bitcoin choices have been launched in response to demand for “more diverse trading products”
“Financial instruments like options don’t guarantee profits, but they do provide traders with greater flexibility and more opportunities,” mentioned Ciara Sun, vp of Global Business at Huobi Group. “More importantly, we’re giving users access to an options product backed by the security and reliability they’ve come to expect from a global exchange like Huobi.”
Specifically, “call options” provide the client of the choices the best to buy the underlying asset at a specified worth on a specified date, whereas put choices give the client the best to promote at a specified worth and date.
Ciara Sun additionally mentioned that the choices have been launched in response to market demand.
Cypherium Listed as Preferred Startup by French Investment BankGo to article >>
“As investors brace for prolonged economic uncertainty across global financial markets, the influx of institutional capital and other forms of ‘smart money’ into digital assets like Bitcoin are driving a surge in demand for more diverse trading products,” she mentioned.
A surge of progress in derivatives markets
Huobi has additionally seen a surge in derivatives buying and selling quantity throughout the board. “In the aggregate, growth in crypto derivatives trading volume is now outpacing that of spot trading,” Huobi’s announcement mentioned.
Indeed, knowledge from Cryptocompare reveals that cryptocurrency derivatives buying and selling volumes climbed 32% in May of this 12 months to a brand new document excessive of $602 billion, in contrast to 5% progress in complete spot buying and selling volumes.
During an interview with Finance Magnates in June, Ciara Sun famous that a lot of the expansion in crypto derivatives markets may be attributed to institutional buyers.
“The cryptocurrency market can be very good for traders who can hedge their risks while still finding arbitrage,” she mentioned. Derivatives contracts like futures contracts and perpetual swaps have turn out to be more and more fashionable amongst the institutional crowd.”
“Institutional investors are very active in the spot markets, but we’re seeing even more growth in the futures and derivatives market.”