BTSE, a bitcoin and cryptocurrency exchange using technologies to develop real-world financial products and services, has launched a new derivative where investors can take a position on Bitcoin’s overall share of the market and settle in a variety of currencies.
“BTSE’s Bitcoin Dominance Futures with multi-asset capability is a part of our mission to strengthen the bridge between trading traditional fiat and cryptocurrencies. BTSE also offers the most liquid futures on the market for this tool, allowing our users to access higher volume and product variety,” says Jonathan Leong, CEO of BTSE.
Bitcoin Dominance Futures have become an increasingly popular new trading game for Bitcoin holders, allowing investors to bet on Bitcoin’s overall market cap dominance compared to other coins on the market. The value is taken from CoinMarketCap, and BTSE has plans to add values from TradingView in the near future. Bitcoin’s dominance currently sits at USD$170 Billion, making up around 60% of the total market dominance.
BTSE is the second to offer the new trading tool after Bitfinex, but the first to offer the trading tool with multi-asset collateral capability. Using BTSE’s All-In-One-Order Book, users have greater flexibility to decide which margin they’d like to place their trade in, as well as the currency they’d like to settle in. This is advantageous as traders can avoid price slippage if Bitcoin is in decline, and users are not required to convert assets and pay unnecessary transaction and conversion fees at the end of trade.
Traders can post margin and settle their profits in any combination of fiat currencies, including USD, EUR, HKD, and cryptocurrencies, including BTC, ETH, Tether, or USDC.
Bitcoin Dominance Futures act as a great trade alternative to Bitcoin Futures contract for more risk-averse traders, too. The trade offers less-volatile exposure because it references Bitcoin to a broader basket of digital assets. Bitcoin’s dominance value has shown less volatility than its spot price and this figure has become attractive for newly introduced Bitcoin traders within the market.