The cryptocurrency derivatives market experienced significant growth in 2020, with Bitcoin (BTC) and Ethereum (ETH) derivatives steadily increasing their share relative to spot trading volumes. While BTC dominates 90% of crypto options trading, followed by ETH at 10%, the BCH options market remained untapped—until now.
Matrixport's professional derivatives exchange Bit.com, after successfully launching BTC and ETH perpetuals and options, is introducing BCH perpetual contracts and options, marking the industry's first BCH options product and pioneering this emerging market segment.
Bit.com: The World's Second-Largest Options Exchange
Bit.com, launched by Singapore-based financial services leader Matrixport, is a high-performance derivatives platform specializing in digital assets. Within five months of its August 2020 launch, it achieved:
- Top-tier liquidity for BTC/ETH perpetuals and options
- Institutional-grade trading experience with advanced risk management
- $6B+ total trading volume by January 2021
- #2 global ranking in options trading volume (per Skew data)
Key advantages include:
- Secure custody via regulated partner Cactus Custody
- Strategic partnerships with institutional platforms like Paradigm
- Rapid adoption by miners, hedge funds, and proprietary traders
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BCH Market Analysis: Why Options Matter
As a top-10 cryptocurrency, Bitcoin Cash (BCH) demonstrates strong fundamentals:
- Market Cap: $63.7B (0.92% of total crypto market)
- Recent Surge: 50% price increase in January 2021, breaking $600
- Growing Activity: 5x spike in daily transactions
However, traditional spot trading and leveraged contracts fail to meet evolving needs:
- Miners require risk-hedging tools against volatility
- Traders seek non-linear payoff strategies unavailable in futures
- The market lacks structured yield opportunities
Bit.com's BCH options solve these gaps by enabling:
✅ Covered calls for income generation
✅ Protective puts for downside protection
✅ Complex multi-leg strategies
Strategic Expansion into BCH Derivatives
Bit.com's BCH product launch addresses three critical market needs:
- Miners' Hedge Demand: POW-based BCH has a large miner community requiring volatility management tools.
- First-Mover Advantage: Capturing the untapped BCH options segment before competitors.
- Market Diversification: Broadening crypto derivatives beyond BTC/ETH dominance.
This move aligns with Bit.com's vision to lead innovation in crypto derivatives. Future plans include expanding to other altcoin products while maintaining rigorous risk controls.
FAQ: BCH Options on Bit.com
Q: When will BCH options launch on Bit.com?
A: The exact date will be announced soon—follow Bit.com's official channels for updates.
Q: What contract specifications will BCH options have?
A: Expected to mirror Bit.com's existing BTC/ETH options models (e.g., monthly expiries, strike price intervals).
Q: How can miners use BCH options?
A: Selling calls to monetize holdings, buying puts to hedge, or using spreads to reduce collateral requirements.
Q: Will BCH perpetuals have different leverage than BTC?
A: Likely similar 1-100x leverage, subject to Bit.com's dynamic risk adjustments.
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Disclaimer: Trading cryptocurrencies involves risk. This content is for informational purposes only and does not constitute financial advice.