Bitmex, a heavyweight crypto derivatives exchange, has recently announced that it will soon launch four new “Quanto” futures contracts. These contracts will be for Chainlink (LINK), Cardano (ADA), Tezos (XTZ), as well as EOS, and will all be paired with Tether’s USDT token.
Perpetual Swaps Most Popular
As it stands, the Quanto feature for these altcoin contracts will be exclusively for the BitMEX exchange. Seeing as BitMEX is a Bitcoin-only exchange, settlements and margins within it are denoted by way of Bitcoin, as opposed to the underlying asset or USD.
The Seychelles-based exchange sees the most popularity when it comes to its perpetual swap contract. These contracts come without an expiry date, much like traditional forward or futures contracts.
Innovating With The Market
Excluding the above-mentioned cryptocurrencies, BitMEX also includes support for quarterly futures contracts, doing so for EOS, Cardano, and Tron (TRX).
Until now, the quote currency for these altcoin quarterly futures had always been Bitcoin. The only exceptions to this fact were Ethereum (ETH/USD) and Bitcoin itself (XBT/USD).
However, BitMEX isn’t one to turn a blind eye to an opportunity. With the recent developments within the crypto space, BitMEX stated that 60% of the overall altcoin volumes are attributed to USDT trading pairs. As such, the exchange has seen fit to incorporate new futures contracts that will be denoted with USDT, as well.
Large VOlatility Leads To Opportunity
As for the Q3 quarterly contracts within the exchange, the expiration date has been set on the 25th of September, 2020. The new contracts will allow for the speculation of the prices of cryptocurrencies by the year’s end. With the incredible price drop, coupled with the massive price volatility, that’s occurred these past few days, the long-term contracts are expected to gain a boost in overall attractiveness, which will help the space.
It’s expected that BitMEX will reveal the specifications of these new contracts within the next couple of days, which includes a listing by next week’s time. With the massive amounts of volatility having suddenly caused massive damage within the futures market, it will be interesting to see what these new contracts will do for space at large. Time will only tell how successful or unsuccessful it will be, however.