Binance launches bilateral European bitcoin options

The great crypto exchange Binance will expand its cryptocurrency trading catalog with the launch of a European style bitcoin options contract (BTC).

Announced December 28th The launch follows a successful network test that was carried out in November. The press release also revealed this The new options contract will be valued and settled in tether (USDT).

As part of the announcement Binance identified the growing appetite for BTC options as the reason for the new product debut. Bitcoin options topped $ 1 billion for the first time in early December, with total open interest approaching $ 6 billion.

Binance launches bilateral European bitcoin options
Binance launches bilateral European bitcoin options

Binance CEO commented on the launch, Changpeng Zhao said the fact that Bitcoin recently hit $ 28,000 underscores the growing investment in the cryptocurrency space. Add:

“The growth of the crypto industry can in large part be attributed to a combination of factors, including wider public education and institutional interest, innovations in DeFi protocols and smart contracts, and the development of a robust derivatives market. “

In April, Binance joined the growing number of exchanges introducing Bitcoin options trading with the introduction of US-style BTC options contracts. The main difference between the US and European formats is that traders can only exercise the latter after the contract expires.

Binance’s earlier iteration of Bitcoin options was also criticized as one-sided, as users were unable to “write” options and pocket the premium. As a result Binance options were generally more expensive due to the inability to arbitrage.

The European BTC options announcement is the latest in Binance’s hectic December. As previously reported by Cointelegraph, the exchange recently started offering SegWit (Segregated Witness) support for Bitcoin deposits.

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