EQONEX launches BTC Dates Futures with physical settlement

Rick Steves

Futures contracts are commonly used to speculate on the direction of an underlying asset using leverage, and hedge against price movements.

EQONEX has launched BTC Dated Futures with physical settlement on its Singapore subsidiary, marking an important milestone in the company’s expanding product suite.

This latest launch offers experienced traders access to commonly deployed derivatives trading strategies in cryptocurrency markets.

It also follows the introduction of Cross Collateral functionality, Ethereum (ETH) Perpetual Futures, and BTC Perpetual Futures in 2021.

The digital asset exchange launched BTC Dated Futures but will eventually add dated futures for additional cryptocurrencies including ETH in the coming months.

BTC Dated Futures offered in USDC and with leverage

Andrew Eldon, Interim Chief Executive Officer of EQONEX, commented: “We still see a gap in the exchange marketplace to better serve traders who are looking for safe access to products and strategies from traditional finance to exploit and hedge against the volatility of crypto market trading. We are removing the barriers to entry by delivering a regulated crypto exchange, and by adding institutional-grade products to our customers’ toolkits.”

“We have been very deliberate in building a business that sits at the intersection of traditional finance and the future of finance. Those who already understand the merits of basis trading will be particularly appreciative of this product launch, but we are also providing educational resources to help those wanting to learn how to broaden their trading approaches for risk management or to capture yield.”

A Dated Futures contract enables users to enter into a binding agreement to buy or sell the underlying asset, in this case BTC, at a predetermined price at a specified date in the future.

Futures contracts are commonly used to speculate on the direction of an underlying asset using leverage, and hedge against price movements.

Few exchanges offer physically-settled futures contracts for cryptocurrencies as it requires exchanges to overcome common security and technical challenges of physical BTC settlement. EQONEX leverages Digivault’s custody and its fiat on-ramp capabilities.

An overview of EQONEX BTC Dated Futures:

  • EQONEX BTC Dated Futures are denominated in the USD Coin stablecoin (USDC) and are linear in that the price of the futures increases as the price of BTC increases against USDC.
  • The expiry of the Dated Future will occur at 08:00 UTC on the final Friday of the expiry month.
  • Physical settlement occurs automatically on the expiry date which can also remove some hedging risks that exist with cash-settled contracts.
  • Users can trade EQONEX BTC Dated Futures with leverage.
  • EQONEX is offering an education program for those seeking to learn more about futures contracts for cryptocurrency markets, as well as detailed product specifications here.

EQONEX encompasses cryptocurrency exchange as well as an over-the-counter trading platform, while offering a front-to-back integrated trading platform, Access Trading, a securitization advisory service EQONEX Capital, market-leading hot and cold custodian Digivault, and asset manager Bletchley Park.

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