Bitfinex decided to expand its offering by launching equity index derivatives. The exchange stated that the move is similar to what CME did by adding Bitcoin futures. Now, verified users in certain jurisdictions will be able to access traditional and crypto markets in the same place.
Major cryptocurrency exchange, Bitfinex, has decided to challenge that title by launching a new product that will take it beyond just the crypto market. The exchange has added new equity index derivatives, which will settle in Tether (USDT).
Bitfinex launches derivatives for two stock indexes
With crypto exchanges getting regulated and approved of the authorities around the world, it was only a matter of time before they will expand their list of offerings to attract additional users. Bitfinex decided to lead this movement by launching new derivatives — Europe 50 and Germany 30 perpetual swaps.
The derivatives offer exposure to regular, traditional stock markets, with Europe 50 representing the STOXX Europe 50 Index. The Index covers 50 different stocks, which come from 18 different countries within Europe.
The other derivative, Germany 30, represents an Index that contains the 30 largest stocks from Germany — Deutscher Aktien Index.
As mentioned, this is the first time ever that a full crypto exchange launched an equity product, and it represents the reversed move of what CME did. Bitfinex’s CTO, Paolo Ardoino, said as much, noting that CME entered the crypto industry with Bitcoin futures. Bitfinex decided to make a similar move by breaching traditional markets.
Ardoino further added that Bitfinex’s goal is to expand the investment universe for its users. Any current or future users of the exchange will be able to interact with crypto or traditional markets from the same platform.
The move will let users enhance cross-asset strategies
The platform assessed that 80% of its volume is made by high-frequency traders, who have specific requirements. The new offering will allow them to enhance their cross-asset strategies, without having to move to a different platform to invest in traditional assets.
Both perpetual swaps are available for trading with leverage, offering up to 100x leverage. As mentioned, they will settle in USDT, which reduces interest rate risks.
Lastly, Ardoino noted that these new derivatives will only be available to verified users in several selected jurisdictions.
