Binance, a Crypto exchange has decided to launch bilateral European options contracts of Bitcoin on their own trading platform. It is currently expanding its trading catalog of cryptocurrency with its new launch of the European Bitcoin options contract. Announced on 28th December, the launch followed a successful trial which happened in November.
A press statement revealed that the new contract in options will be settled and priced in USDT(Tether). As a part of this announcement, it has identified the appetite which is growing day by day for Bitcoin options because of the reason for the new upcoming product’s debut. Bitcoin options crossed the mark of $1 bn for the 1st time with the open interest reaching the mark of $6 bn.
Opinion Of The CEO Of Binance
Changpeng Zhao, CEO Of, Binance remarked that the mark of $28,000 reached by Bitcoin has underscored the growing amount of investment inside the whole crypto space. He further added that the growth of the crypto industry is attributable to the combination of many factors including greater institutional interest and public education, innovation in smart contracts and Defi protocols, along with the development of the market of robust derivatives. Binance in April joined the exchanges that were rolling out BTC options which could be traded with the release of the American Bitcoin options contract.
A massive difference between European and American formats is only at the time when the contract has expired, the traders can exercise the European formats. Binance’s iteration of the options of Bitcoin was criticized for getting one-sided because users couldn’t “write” options while pocketing the premium. Therefore, the options of Binance turned out to be very expensive because of the inability of conducting an arbitrage. The European Bitcoin options are the most latest news from the company in a month which has been busy throughout December.