Exchanges

BTSE to offer margin and settlement for Bitcoin Dominance Futures

Bitcoin-based fintech company BTSE has launched a new derivative where investors can take a position on Bitcoin’s overall share of the market and settle it 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 has become an ever present metric among cryptocurrency traders and Bitcoin holders as it demonstrates sentiment in the market as well as the relative strength of altcoins.

BTSE’s futures products draws data from Binance-owned CoinMarketCap while it has plans to add values from TradingView in the near future.

Currently, Bitcoin’s market cap is at $171 billion, which makes up 62.2% of the entire cryptocurrency market cap.

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.

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Oliver Knight

Londoner ‘Ollie’ graduated from Birmingham City University with a journalism degree in 2016. He combines his writing with his love of crypto and blockchain here at Coin Rivet, saying “It disrupts well-established institutions (banks) while giving an avenue to the less fortunate to achieve financial freedom.” Like all true Londoners, his pet hate is… “People standing on the left-hand side of the escalators on the Tube!”.