Crypto Derivatives Exchange BitMEX Quietly Adds ETH/USD Contracts With 50x Leverage

  • Crypto derivates exchange BitMEX has recently added ETH/USD futures contracts.
  • Some traders believe this will be the most liquid ETH pair on the market, despite its quiet launch.

Cryptocurrency derivatives exchange BitMEX, which recently traded a record 1 million bitcoin in 24 hours, recently added ETH/USD futures without any major announcement. The trading pair was spotted by traders, who believe this may become the most liquid ETH/USD pair on the market.

At 11 am UTC, BitMEX’s chief executive officer Arthur Hayes announced the trading pairs to his 22,800 Twitter followers.

The futures contract let traders enter short or long positions – betting for or against the cryptocurrency – with a leverage of up to 50x. This means that with only 1 ETH, at press time worth little under $410, a trader can enter a position with 50 ETH, while risking liquidation.

The trading platform has been offering traders ETH/BTC futures for some time, but the pair doesn’t let traders easily take advantage of arbitrage opportunities or use the platform to hedge a position on the market.

High Leverage and Huge Liquidity

BitMEX notably rose to prominence for offering cryptocurrency traders leverage of up to 100x on its BTC/USD futures contracts. Given the flagship cryptocurrency’s volatility, such a high level of leverage allows traders to make unprecedented profits, or quickly see their positions get liquidated.

According to available data the exchange’s BTC/USD trading pair is the most liquid in the world, with a 24-hour trading volume of over $3.5 billion. Being a derivative, the pair is made to replicate the spot BTC market, with its perpetual contracts being physically settled once traders close their positions.

Taking this data into account, some traders now believe the ETH/USD pair may become the most liquid on the market.

As CryptoGlobe recently covered, the exchange has been adding various futures contracts to its platform. In early June it added EOS futures ahead of the cryptocurrency’s mainnet launch, with up to 20x leverage. Later that month, it added TRON (TRX) futures “due to popular demand.”

Notably, Arthur Hayes is a well-known bitcoin bull. Earlier, he revealed he sees the flagship cryptocurrency hit $50,000 by the end this year, a price prediction he stood by after bitcoin’s price fell below $5,900.

This week, speaking to CNBC’s Hayes noted he believes a bitcoin ETF will be passed by the end of this year, a decision seemingly necessary for his price prediction to come true. The CEO revealed he came to his conclusion after browsing through the US Securuties and Exchange Commission’s website.

Crypto-Friendly Digital Bank Revolut Raises $500 Million at $5.5 Billion Valuation

Francisco Memoria

The cryptocurrency-friendly digital bank Revolut has raised $500 million in a Series D round of funding that’s valuing the company at $5.5 billion. Over the years, Revolut raised $836 million.

According to TechCrunch, the venture capital firm TCV is leading the round and other existing investors are also participating in it. Revolut hasn’t shared the names of these firms, but DST Global, Index Ventures, and Balderton Capital have all invested in the firm.

Revolut is a digital bank that’s seemingly looking to help replace traditional bank accounts with an app that helps users manage their finances. Using the Revolut app it’s possible to send, spend, and receive money. It also issues a debit card for its users.

The fintech firm has added various features, including the ability to buy stocks or invest in cryptocurrencies. In March 2019, as CryptoGlobe reported, it started offering stop orders for trading major cryptos like BTC, ETH, XRP, LTC, and BCH.

The $500 million are set to be used to improve the user experience for Revolut’s 10 million users, as well as its revenue. Specifically, the digital bank is looking to offer its users lending services, and it has already started doing so as in the U.K. it offers savings vaults. Nik Storonsky, Revolut’s co-founder and CEO, said:

Going forward, our focus is on rolling-out banking operations in Europe, increasing the number of people who use Revolut as their daily account, and striving towards profitability.

While the firm doesn’t share specific number when it comes to its transaction volumes or customers, TechCrunch reports its number of users grew by 169% in 2019, while daily active customers grew by 380% in the same period.

Revolut is currently available in the U.K., Europe, Singapore, and Australia. It’s focusing on launching in the U.S. and Japan.

Featured image via Pixabay.