Market experience on the impact of Bitcoin futures on the crypto market is still relatively low, so no Altcoin futures have yet been released in the US. One of the largest stock exchanges in the world, Bitmex, has now announced the launch of the Ethereum Futures on its platform without much ado.
At 11 AM London time, a new market has been opened that allows traders to achieve long or short positions with a requirement of only 2 percent of initial margins. This means that you can speculate on a 50-fold margin or in terms of numbers — an ether can make a very risky bet on 50 ethers.
Bitmex has been offering ETH / BTC futures for some time, but ETH / USD was missing until yesterday. This introduction was initially criticised, as the platform could not be easily arbitraged or hedged, and now the dollar pair has also been added without any prior notice.
Bitmex, in the crypto-age, is relatively an old stock exchange, which started its business in the year 2014. The crypto exchange quickly made a name for itself internationally, offering 100- bit Bitcoin margins.
In contrast to CME or CBOE futures, futures contracts traded on Bitmex have deposited cryptocurrencies as collateral. Bitmex launches an attack on the competition with the Ethereum Futures and tries to exploit its advantage over the competition. Still, many traders wonder why the release took so long.
Futures trading offers speculators the opportunity to bet on large returns or losses without making large capital investments. And thus, they can possibly make money without having the corresponding amount of cryptocurrencies in their entirety. The effects on the crypto market will have to be observed for the time being. Detailed instructions on trading in Ethereum Futures on the Bitmex Stock Exchange can be found here.
Ethereum’s share price is moving lower in line with the current trend in the crypto market, recording a price decline of -4.26 percent to a price of USD 403.44. With a market capitalization of just under $ 40.7 billion, Ethereum continues to rank second in the world’s largest cryptocurrencies.