BitMEX says it will be the first to launch Ethereum quanto futures contracts, giving traders a new way to bet on the second-largest cryptocurrency by market cap.
The contracts roll out on May 5th, offering 50x leverage and allowing traders to speculate on the price of ETH, the world’s second-largest cryptocurrency by market cap, without having to deposit US dollars. Although the contract prices ETH against USD, it will be settled in Bitcoin (BTC).
“ETHUSD quanto futures have a fixed Bitcoin multiplier regardless of the USD Ethereum price.
This allows traders to long or short the ETH/USD exchange rate without ever touching either ETH or USD! Traders post margin in XBT [Bitcoin], and earn or lose Bitcoin as the ETH/USD rate changes…
This new product will be the only one of its kind available in the market, and represents significant new trading opportunities on BitMEX.”
BitMEX has been working to expand its futures options this year, and launched XRP futures back in January with 75x leverage. It also offers various futures contracts for Bitcoin Cash, Litecoin, EOS, Cardano and Tron.
Futures trading is exceptionally risky, with the potential for large profits and devastating losses by allowing users to enter positions that are larger than their account balance.
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any assets including cryptocurrencies, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
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