Binance Unveils Bitcoin Quarterly Futures
As Bitcoin (BTC) continues to prove a point as a viable investment asset class, much promise rallies around its future value. The price of Bitcoin has refused to break its $10,000 resistance point since its third halving. It has however been projected to experience a massive bull run soon. As this expectation deepens, cryptocurrency exchange Binance is set to launch Bitcoin Quarterly Futures in addition to its suite of derivative products.
Bitcoin Futures and Binance Offering
Bitcoin futures allow investors to gain exposure to Bitcoin without actually having to hold the underlying Bitcoin. Bitcoin Futures comes in the form of a Futures Contract, similar to the Future Contract for a Stock Index. With Bitcoin Futures, investors can speculate on the future price of Bitcoin and get money back in return upon settlement of the contract.
The Bitcoin futures can be modeled to span different durations ranging from a month to 12 months or more. While the Chicago Mercantile Exchange (CME) offers a monthly Bitcoin Future contract, the Binance offering will span three months. The Binance team confirmed the Bitcoin Futures has a leverage up to 125x and will be available on the Binance Web Futures web trading interface.
The Binance Bitcoin Futures Contract will be settled in Bitcoin and complemented with competitive taker fees of 0.020%. The contract will be settled on the last Friday of the corresponding three month period.
Implication for Investors
Bitcoin Futures investment is a risky venture but can offer a good alternative to the existing investment opportunities available for Bitcoin. Blockchain.news reported increased growth in CME’s Bitcoin Futures portfolio and this indicates the growing acceptance of Bitcoin Futures as a BTC investment alternative. With the Bitcoin Quarterly Futures, Binance customers which number in their millions now have access to Bitcoin Futures Trading on the platform they have come to trust.
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