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Ethereum Quanto futures with BitMEX

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Crypto exchange BitMEX announced a new product that promises to be ‘unique in the market’, a new Ethereum Futures (ETHUSD) Quanto contract.

According to BitMEX’s post, the ETHUSD pair will trade with a maximum leverage of 50x, an initial equity of 2%, a basic maintenance margin of 0.90% and without having to hold ETH or USD. The official release of BitMEX plans to be on May 5 at 04:00 UTC.

Ethereum Quanto futures

Some may wonder, what is this kind of instrument about?

The BitMEX blog explains that a ‘Quanto’ it is a type of derivative in which the underlying is denominated in one currency, but the instrument itself is settled in another currency at some rate.

“ETHUSD quants futures have a fixed Bitcoin multiplier regardless of Ethereum price in USD. This allows traders to buy or sell the ETH / USD exchange rate, never touching ETH or USD! Traders publish the margin on XBT, and win or lose Bitcoin as the ETH / USD rate changes. ”

Therefore, according to the blog post, investors who have this type of Ethereum futures should not worry about daily changes in the exchange rate.

In this way, the new product appears to be the only one of its kind available on the market and therefore represents new opportunities at BitMEX.

Specifications

The first ETHUSDM20 contract will be released on May 5, as previously mentioned, and will expire on June 26, 2020 at 12:00 UTC.

In addition, ETHUSDM20 is available on Testnet, along with full contract specifications, BitMEX said in its statement.

In this way, the following details of the Ethereum Quanto Futures are detailed in the statement:

  • Provider: BitMEX
  • Symbol: ETHUSDM20
  • Expiration Date: June 26, 2020, 12:00 UTC
  • Bitcoin multiplier: 0.000001 XBT (100 Satoshis)
  • XBT Contract Value: ETHUSD Price * Bitcoin Multiplier (100 sat / $ 1)
  • Underlying: .BETH
  • Maximum leverage: 50x
  • Maker Fee: -0.025%
  • Taker Fee: 0.075%
  • Base initial margin: 2.00%
  • Base maintenance margin: 0.90%

BitMEX and its battle to gain ground

For some time now, the crypto exchange has been working to expand its futures options. In fact, in January it launched XRP futures with a leverage of 75x.

Despite the fact that BitMEX is one of the classics for futures trading, it has lost some ground as Binance Futures has grown. So some might think that the new project is aimed at helping the crypto exchange regain some of its popularity.

Will the new Ethereum Quanto futures really be a desperate strategy? We want to know your opinion in the comments.



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