Bybit announced on Thursday that it would launch a quarterly BTC / USD futures contract on November 30th.. Two contracts are being offered at launch: BTCUSD1225, which will be billed on December 25, 2020, and BTCUSD0326, which will be billed on March 26, 2021.
According to Bybit, new futures contracts have no funding fee, which means traders can hold the position for free as long as the contracts are in effect.
As with traditional futures contracts lBitcoin futures allow traders to buy and sell the digital currency at a set price at a specific time in the future.
Bybit isn’t the first cryptocurrency trading platform to offer quarterly bitcoin futures. Binance, a Malta-based exchange with the highest daily volume, launched its quarterly BTC futures contracts in January.
The demand for crypto derivatives is increasing as more institutional investors step in. Recent data from Wilshire Phoenix suggests that CME’s Bitcoin futures are having a significant impact on the price of the digital currency.
The report says:
“CME-Bitcoin-Futures have gained in importance. This is not only evident in the trading volume and in the open interest, but also in the influence on the formation of spot prices.”
Published in December 2017, CME Bitcoin futures are now the second largest open BTC futures market. The top spot belongs to OKEx, according to Skew, a data analytics company.
Institutes increasingly see Bitcoin as a long-term investment opportunity. People like Paul Tudor Jones and Stanley Druckermiller have also advocated digital currency, which could indicate a shift in institutional thinking.