Crypto exchange platform BitMEX has reportedly made a new Ether-powered futures contract available on its trading site.
Specifically revealed on April 24th, the new derivative contract will come with a stable Bitcoin (BTC) multiplier, which will remain unchanged despite the Ether price fluctuations in the US dollar.
BitMEX reportedly disclosed that this development will enable short or long execution of Ether’s USD exchange rate, and will not require traders to be in possession of Ether or dollars.
“Traders post margin in XBT [Bitcoin], and earn or lose Bitcoin as the ETH/USD rate changes.” The announcement further clarified.
The exchange is set to roll out the ETHUSD futures contracts on May 5th this year, with a 50x highest benchmark in leverage. BitMEX is reportedly confident that the “new product will be the only one of its kind available in the market.”
The new BitMEX derivative contract utilizes the Quanto feature ETHUSD perpetual swap contract of itself, to integrate with the expiry and settlement of traditional futures contracts. The effective period of the contract will be by quarter, resembling the firm’s altcoin futures contract.
“We anticipate that our new ETHUSD quanto futures contract product will be popular amongst BitMEX users from launch on May 5, and we’re encouraged by the positive reaction we’ve received from the market already, pre-launch.” BitMEX expected the new feature will re-generate the reduced interest in its offerings among crypto derivative traders.