Futures, Options, and Deribit Perpetual

Fibo Quantum

Leading Bitcoin Futures and Dutch Options exchange platform – Deribit – has recently announced that it will be listing Ethereum as part of its portfolio. Now, with this listing, Deribit has made it possible and easier for the general public to dabble in Vanilla-style, European Ethereum options for the first time in the history of cryptocurrencies and digital currencies.

Deribit, in particular, is already well-known for being the first true BTC options and futures exchange platform and this explains why it is also offering the popular Deribit Perpetual as one of the new line-up products.

According to the founder and CEO of Deribit, ” The Volume of our entire Bitcoin options has been progressively growing in a tremendous fashion for the past few months. Many OTC desks and customers are quite eager to witness the grand launch of these Ethereum Options.

Until recently, Deribit has been primarily focused on BTC but if the developments of 13th March 2019 are anything to go by, then there is really no doubt the Deribit has made one of the largest transformations of the platform by introducing Ethereum products.

The rising demand for options and futures in the digital currencies space has been on a steady increase for the past couple of years now, especially considering that more and more crypto traders and financial institutions are coming to the realization of how resourceful of an instrument they are. And this applies to both hedging and trading. Because of its unique characteristics, a big majority of the volume of Bitcoin options goes through Deribit. The options make it possible for sellers to amass a premium while still allowing buyers the convenience of limiting their risk without necessarily risking liquidation and ‘stop hunted’.

Creation of New ETH (Ethereum) Derivatives

These new ETH products will make use of Ethereum as the main collateral. In reality, it sets the platform Deribit apart from conventional players since now users that are holders of ETH can use to hedge or trade without necessarily worrying about the ETH/BTC conversion rate. And this is set to be useful to a large divide of people ranging from small-scale traders, startups, and miners or even Ethereum holders looking to utilize their hedge and holdings without necessarily fretting about conversion rates.

These derivatives will assist in the formation of an efficient and healthy financial market by giving speculators, arbitrageurs, and hedgers a free market to do business with each other.