BitMEX Introduces Crypto Options Trading to Compete with Deribit
Global crypto derivatives exchange BitMEX is expanding its platform by launching options trading, co-developed with PowerTrade, a crypto options platform with backers including Pantera Capital, Ledger Prime, and Ascend Ventures.
BitMEX invented the perp - now we’re reinventing options.
— BitMEX (@BitMEX) May 8, 2024
In partnership with @PowerTradeHQ, we’re excited to introduce BitMEX Options - where you can trade a wide range of crypto options margined in Bitcoin, USDT, or USDC.
➕ We’ve got some exciting rewards for our first… pic.twitter.com/flKnbdLgVE
BitMEX officially announced on May 8 that it has introduced BitMEX Options, where users can trade a wide range of crypto options margined in Bitcoin, USDT, or USDC.
The company released an exclusive statement to The Block. “In what it refers to as a "crypto OG bullfight," BitMEX hopes to overtake competitors, such as the dominant Deribit platform, for a significant portion of the niche market share. BitMEX is well-known for its 100x leverage perpetual swaps, which it recently increased to 250x for its bitcoin perpetual swap ahead of the halving.”
Furthermore, the CEO of BitMEX, Stephan Lutz, stated that the company wants to reach at least $500 million in trading volume in three months and offer options trading in all regions where BitMEX is presently accessible.
Lutz said that the market for cryptocurrency options has matured and grown significantly in recent years, with demand from institutional and professional traders "soaring amid the current bullish environment."
The BitMEX CEO anticipates that competition will only get stronger in the future, despite Deribit's current dominance, which is why the exchange sought to "get ahead of the curve" by launching its own options trading in order to expand its derivatives portfolio.
Deribit has dominated the market since 2020 and accounted for 70% ($35.7 billion) of the $51.1 billion in trading volume for bitcoin options in April. With limited success, major cryptocurrency exchanges like Binance and OKX have also attempted to compete with Deribit for market share.
BitMEX aims to capture a larger trading volume within the next three months by incentivizing users with zero fees and instant cash rewards. For all of May, BitMEX Options will have zero trading fees, and all users who deposit more than $1,000 and trade one option on BitMEX will get a 20 USDC sign-up bonus.
The BitMEX options platform provides a “full suite” of institutional-grade options for assets such as dogecoin, ether, bitcoin, XRP, BNB, solana, and ether. The company also plans to add more options in the near future.
Mario Gomez Lozada, CEO of PowerTrade, continued, "The new BitMEX options platform merges BitMEX's deep liquidity and unparalleled reliability with PowerTrade's trader-centric options solution, empowering traders with seamless access to the most performant financial products."
On December 6, 2023, BitMEX, one of the world’s largest and oldest crypto trading companies founded in 2014, entered into a strategic partnership with PowerTrade to investigate how new products can be integrated into BitMEX's extensive portfolio and reaffirm the platform's dedication to leading innovation and improving the user experience when trading.
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