The Binance crypto exchange has launched a new Bitcoin futures product (BTC) even though institutional investors are showing new uncertainty about the future.
In a blog post on June 11, Binance revealed that its quarterly futures contracts had gone into effect, and that settlement was due in September.
Binance’s quarterly futures are activated
The move marks Binance’s latest venture into Bitcoin derivatives, a market currently dominated by OKEx and Huobi exchanges.
Bitcoin Options Open Interest Increases 50% in One Month to $1.5 Billion
Users will be able to use up to 125x leverage, first on the desktop version, before the mobile version goes online.
Speaking to Bloomberg, CEO Changpeng Zhao said user demand had driven the decision.
„We have the perpetual futures, so we wanted to move from the longer term to the short term,“ he told the publication.
„We have many users who trade futures on other delivery platforms, and they ask us to launch delivery futures so they can trade in one place. We launch products related to user demand“.
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The timing of the launch underscores Binance’s faith in the potential of the Bitcoin derivatives market, just as analysts are warning of downward signs among institutions.
Overall volumes declined in the weeks following the third halving event, despite open interest in Bitcoin options that reached a record $1.5 billion this week.
filbfilb warns about the institutional „bearish“ mood
The reduced volumes coincide with a similar calm in the markets, with the BTC/USD persisting in a corridor of less than USD 10,000 and a popular sentiment indicator, the Crypto Fear and Greed Index, remaining in the „neutral“ zone for several days.
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Cointelegraph contributor filbfilb suggests that, in the meantime, only the growth in Tether market capitalization (USDT) could offset the impression that the business environment is „consistently bearish.
„The most optimistic thing that can be said at this time, after seeing the institutions become bearish, is the implicit demand for tether non-deployment,“ he said in private comments.
Demand for Tether tends to produce a general correlation with the strength of Etoro price. This week, the market capitalization of stablecoins is on track to cross the $10 billion mark for the first time.