Popular cryptocurrency exchange and derivatives trading platform, BitMEX, announced today that it is launching an ETHUSD Quanto futures contract on May 5, 2020. The new product will be the first of its kind in the market. The ETHUSD futures are Quanto contracts, similar to the ETHUSD perpetual swap.
BitMEX ETHUSD Quanto Futures
According to the exchange, the ETHUSD Quanto futures come with a fixed Bitcoin multiplier regardless of the price of Ether (ETH) in USD. This gives traders the opportunity to long or short the ETHUSD market rate without touching the pair. In other words, the contract provides exposure to ETH/USD without holding either.
The new product also allows traders to set their leverage from 1x to 50x. Traders will post margin in XBT, and changes in the ETH/USD rate will determine whether they will earn or lose Bitcoin.
The futures will be traded with the symbol “ETHUSDM20,” while the Bitcoin multiplier is pegged at 0.000001 XBT (100 Satoshis). The XBT Contract Value is calculated by multiplying the ETHUSD Price by the Bitcoin Multiplier (100 Sat/$1).
Other important details about the contracts are: -0.025% as maker fee, 0.075% as taker fee, Base Initial Margin at 2.00% and 0.90% will be charged as Base Maintenance Margin.
At the time of writing, the ETHUSDM20, alongside the full contract specs and ETHUSD Series guide, is now available on Testnet.
ETHUSD Quanto Contract Expires Quarterly
Per the announcement, the product comes as a combination of the Quanto feature of BitMEX’s existing ETHUSD perpetual swap and the expiry and settlement used in traditional futures. This means that the contract expires quarterly.
With the futures expected to go live on May 5 at 04:00 UTC, the first contract will expire on June 26, 2020, 1200 UTC.
The launch of the ETHUSD Quanto Futures Contract is just another one of BitMEX’s continued efforts to improve tools and options for its users. Earlier this month, the exchange introduced a new feature called “Addresses” that allows users to input and save wallet addresses for easy retrieval during withdrawals.