The contracts will give traders a longer time horizon to speculate on the digital asset.
On Thursday, Bybit announced that it will introduce a quarterly futures contract on BTC/USD on 30 November. Two contracts will be available at launch: BTCUSD1225, settled on 25 December 2020, and BTCUSD0326, settled on 26 March 2021.
Bybit has made it clear that the new futures contracts Ethereum Code have no financing fee, so traders can hold the position free of charge as long as the contracts are valid.
Like traditional futures contracts, Bitcoin Futures (BTC) futures allow traders to buy and sell digital currency at a predetermined price on a specific future date.
Bybit is not the first crypto currency trading platform to offer quarterly futures on Bitcoin. Binance, a Malta-based exchange with the largest daily volume in the industry, launched its quarterly futures contracts on BTC in January.
Demand for crypto derivatives continues to grow as more and more institutional investors take the field. Recent data from Wilshire Phoenix suggests that CME’s Bitcoin futures have a significant impact on the price of digital currency.
The report argues:
„CME’s Bitcoin futures have become significant. This is demonstrated not only through trading volume and open interest, but also by the influence on the formation of spot prices“.
Launched in December 2017, these financial instruments have made the CME the second largest BTC futures exchange for open interest. According to analysts Skew, OKEx takes first place.
Institutions increasingly rely on Bitcoin as a long-term investment opportunity. Figures such as Paul Tudor Jones and Stanley Druckenmiller have also expressed positions in favour of the leading digital currency, potentially signaling a change in institutional thinking.