Cryptocurrency derivatives exchange BitMEX has expanded into the options trading arena to capture a slice of the market currently dominated by Deribit.
The new offering was developed in collaboration with PowerTrade, a specialized crypto options platform. The product addition will help traders take advantage of volatility, hedge risk and discover prices through options, which are generally simple and have no special or unusual features.
Separately, BitMEX also increased its leverage on bitcoin perpetual swaps to 250x, ahead of the bitcoin halving event. The exchange is now targeting at least $500 million in trading volume within the next three months for its new options product, which is available across all regions where BitMEX operates.
“Crypto Options are a great product for derivatives traders especially when the market trajectory is going sideways. As a leading derivatives exchange, we want to empower BitMEX users with the optimal tools to maximize their potential and trading strategies, whether it’s hedging risks, positioning, or capitalizing on the recent surge in implied volatility,” said BitMEX CEO Stephan Lutz.
The BitMEX options platform offers a suite of institutional-grade options for various assets including bitcoin, ether, XRP, BNB, solana, and dogecoin, with plans for further expansion. This initiative is supported by digital asset market makers like iGreeks and DWF Labs to ensure deep liquidity and low slippage for traders.
PowerTrade CEO, Mario Gomez Lozada, also highlighted the synergy between the two platforms, saying, “The new BitMEX options platform merges PowerTrade’s trader-centric options solution with BitMEX’s deep liquidity and unparalleled reliability, empowering traders with seamless access to the most performant financial products.”
BitMEX is leveraging its infrastructure to offer a user-friendly trading experience, which includes features like an orderbook and Request-for-Quote (RFQ) system. This system allows traders to execute large single-leg or multi-leg options strategies without minimum requirements, distinguishing it from competitors that typically do not offer multi-leg strategies or have minimum block sizes.
To attract users to its new service, BitMEX is implementing a zero-fee policy on options trading throughout May, along with a $20 onboarding bonus for the first 1,000 new options traders. Additional incentives include rewards based on trading volume and referred trading volume, as well as monthly trading competitions.
