Binance, the major cryptocurrency exchange, has planned to expand its cryptocurrency trading catalog with the launch of a European-style Bitcoin (BTC) options contract.
It has been reported that the launch follows a successful testnet trial carried out back in November, as the press statement also revealed that the new options contract will be priced and settled in Tether (USDT).
However, as part of the announcement, Binance identified the growing appetite for BTC options as the reason for debuting the new product.
Earlier in December, Bitcoin options crossed $1 billion for the first time with total open interest almost reaching the $6 billion mark.
Binance is releasing European-style #Bitcoin options, finally allowing users to both buy and sell them on the platform. https://t.co/PSsXtELNjd — Cointelegraph (@Cointelegraph) December 28, 2020
Changpeng Zhao (CZ), the CEO of Binance, remarked that Bitcoin recently reaching $28,000 underscored the increasing level of investment in the crypto space.
He added:
“The crypto industry’s growth is in good part attributable to a combination of factors, including wider public education and institutional interest, innovation in DeFi protocols and smart contracts, and development of a robust derivatives market.”
Likewise, Binance joined the expanding cast of exchanges rolling out Bitcoin options trading with the launch of American-style BTC options contracts. The major difference between the American and European formats is that traders can only exercise the latter at the expiration of the contract.
Binance’s previous iteration of Bitcoin options was also criticized for being one-sided as users were unable to “write” options and pocket the premium.
Thus, the European BTC options announcement is the latest from Binance in a busy December.
Source: Cointelegraph
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