Matrixport, a Bitmain spinoff, has launched a crypto derivative exchange platform, Bit.com, to cater to the rising demands in options. Matrixport targets to provide both future and options products for users on the new derivative exchange. Bit.com will first offer the BTC/USD trading pair seamless swap starting on August 3. Other Bitcoin options will then come along on August 17.
The crypto derivatives market has a growth spurt over the recent days more than the spot market leading to Matrixport’s decision. Matrixport COO Daniel Yan mentioned that as per his analysis, the market is bound to grow in the next five years by up to 100 times its current size, especially in the options department. In his opinion, it is still an opportune moment to join the market.
What You Should Know About Matrixport
Matrixport is a platform providing financial services, including investment, trade, digital assets holding, and lending. It has 50 of its staff on Bit.com and employs approximately 160 workers. Matrixport held a fundraiser in March to raise $40 million to build its valuation points. The platform has about 30,000 registered users, a monthly trading volume of above $125 million, and over $500 million worth of assets held. The trading volumes are expected to elevate with the introduction of the new exchange options in the market.
According to Yan, Bit.com would improve vastly on the liquidity sector in options derivatives. Bit.com will additionally create an environment for the growth of beginners in the market. Even though the future markets are already ahead of the options market, Bit.com will facilitate both trades alike as per users’ preferences. Lastly, the BTC/ USD swap feature will enable digital trading currency for fiat.
Deribit Controls the Market
Deribit so far is leading in crypto options derivatives with about 86% of the total market. Other platforms have embraced the same path, including OKEx, LedgerX, Bakkt, BitMEX, and FTX. OKEx comes second with 8.22%.
Deribit has a couple of advantages as a trading platform. Some of them include anonymity, transparency, offering futures and options, zero fees, and high leverages. However, the platform has a few shortcomings.
First, the platform is more suitable for experienced traders; thus, a questionable option for newbies. It deals with a higher level of derivative options and futures, which pose a higher risk for a beginner’s involvement. The accounts are also limited to bitcoin activity. Deribit is unregulated and has no fiat support. It is still on an Android app development process despite its being in the market for a while, as liquidity is yet to improve.