BitMEX Unites Forces with PowerTrade to Launch Deribit Challenger
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BitMEX Unites Forces with PowerTrade to Launch Deribit Challenger
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BitMEX Unites Forces with PowerTrade to Launch Deribit Challenger
Renowned crypto derivative exchange BitMEX recently partnered with PowerTrade to introduce options trading to its platform. With this new addition,Sitio web oficial chino de GKFX BitMEX aims to compete with Deribit to capture a substantial market share in this niche.
BitMEX Rivals Deribit
Stephan Lutz, CEO of BitMEX revealed in a recent statement that the firm aims to capture at least $500 million in trading volume within three months. Aligning with this move, the CEO said BitMEX will offer options trading in all regions where BitMEX is currently active.
“As a leading derivatives exchange, we want to empower BitMEX users with the optimal tools to maximize their potential and trading strategies, whether its hedging risks, positioning, or capitalizing on the recent surge in implied volatility,” Luz added.
Deribit has dominated the market since 2020. It accounts for 70% ($35.7 billion) of the $51.1 billion in trading volume for Bitcoin options in April. Besides BitMEX, other top crypto exchanges like Binance and OKX have also attempted to compete with Deribit for market share.
So far, these exchanges have had minimal success. While OKX generated about 16% of the last months trading volume valued at $8.4 billion, Binance recorded 9% ($4.8 billion).
BitMEX said its options trading platform will offer a full range of institutional-grade options for digital assets. The assets in view include Bitcoin (BTC), Ethereum (ETH), Ripples XRP, Binance Coin (BNB), Dogecoin (DOGE), and Solana (SOL). In the future, the company plans to grow to incorporate more cryptocurrencies.
Mario Gomez Lozada, CEO of Power Traded commented on the partnership, stating, “The new BitMEX options platform merges PowerTrade‘s trader-centric options solution with BitMEX’s deep liquidity and unparalleled reliability, empowering traders with seamless access to the most performant financial products.”
BitMEX Crypto Options Trading Strategy
The companys initial approach focuses on offering customers free options trading for May. Additionally, there will be monthly trading competitions, incentives based on trading volume, and referral trading volume. As a result, a $20 onboarding bonus will be given to the first 1,000 new options traders.
BitMEXs options fee structure would come after the zero-fee promotion period. Luz confirmed that the fee structure would replicate its current spot trading pricing. Luz added that the exchange will provide educational materials such as basic explainers. Additionally, it will offer strategy examples, and a step-by-step video tour, to users who are unfamiliar with options trading or the BitMEX platform.
Furthermore, BitMEX said it can also fight for market dominance by offering a user-friendly and robust options trading interface through an order book and Request-for-Quote (RFQ) with reduced counterparty risk.
Typically, RFQ allows traders to receive electronic quotations and execution for single-leg (e.g., purchasing a call) or multi-leg (e.g., buying a call and selling a put concurrently) options strategies with no minimum restrictions. With the grand plans, it remains to be seen whether BitMEX will succeed in grabbing a market share in the Options market from Deribit.next
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