EQUOS, a Singapore-based digital currency exchange operated by Diginex, has announced the launch of a new Bitcoin (BTC) futures product without any settlement date, which represents a significant leap forward in the BTC derivatives market.
The company introduced the BTC Perpetual Futures Contract on Thursday, a product that the company says is “ well suited to today’s trading environment. ” The perpetual contract is aimed at professional traders with different risk profiles, with prices and liquidity provided by independent market makers.
The exchange claims its new BTC contract is backed by its liquidity reserves, which are partially funded by fees and trading income.
Unlike traditional futures products, a perpetual futures contract has no fixed expiration or settlement date, meaning that the user can hold the position for as long as they want. Perpetual contracts on Bitcoin are currently offered by BitMEX, one of the largest crypto derivative platforms.
Richard Byworth, CEO of Diginex, said the new futures contract aims to provide broader functionality to the crypto derivatives market, a move that he believes will “facilitate broader institutional and professional adoption of crypto assets by traders.”
“This is just the first in a suite of products to offer investors more dynamic hedging tools, fairer liquidation, a platform that doesn’t trade against its users, and provides reputation protection for investors looking for a KYC / AML compliant ecosystem.”
The Bitcoin futures market has exploded in recent quarters, highlighting the growing institutional take-up of the digital asset. EQUOS claims that crypto derivatives grew more than four times faster than the spot market in the third quarter, reaching a daily volume peak of $ 67 billion in late November.