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 contract for Ethereum Futures (ETHUSD) Quanto.

According to BitMEX’s contribution, 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 holding ETH or USD. The official release of BitMEX is scheduled for May 5th at 04:00 UTC.

Ethereum Quanto Futures

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

The BitMEX blog states that a “Quanto” It is a type of derivative in which the underlying is denominated in one currency, but the instrument itself is settled at a certain rate in another currency.

“ETHUSD quant futures have a fixed bitcoin multiplier, regardless of the Ethereum price in USD. This allows traders to buy or sell the ETH / USD exchange rate without touching ETH or USD! Traders publish the margin on XBT and win or lose Bitcoin if the ETH / USD exchange rate changes. “

Therefore, investors with this type of Ethereum futures shouldn’t worry about daily changes in the exchange rate, according to the blog post.

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

Technical specifications

As already mentioned, the first ETHUSDM20 contract will be published on May 5 and will expire on June 26, 2020 at 12:00 UTC.

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

In this way, the following details of Ethereum Quanto Futures are described in detail 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
  • Manufacturer Fee: -0.025%
  • Customer fee: 0.075%
  • Base initial margin: 2.00%
  • Basic maintenance margin: 0.90%

BitMEX and its struggle for soil

The crypto exchange has been working on expanding its futures options for some time. In fact, XRP futures with a leverage of 75x were introduced in January.

Despite the fact that BitMEX is one of the classics for futures trading, it has lost some ground with the growth of Binance Futures. Some may think that the new project aims to help crypto exchange regain popularity.

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

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