Bybit announced Thursday that it will roll out a quarterly BTC / USD futures contract on November 30. Two contracts will be offered at launch – BTCUSD1225, settling on December 25, 2020, and BTCUSD0326, which will settle on March 26, 2021..
Bybit claims that new futures contracts have no funding fees, which means traders can hold the position free of charge as long as the contracts are still in effect.
Like traditional futures, Bitcoin futures (BTC) allow traders to buy and sell digital currency at a predetermined price on a specific future date.
Bybit is not the first crypto trading platform to offer quarterly Bitcoin futures. Binance, a Malta-based exchange with the highest daily volume, launched its quarterly BTC futures in January.
The demand for crypto derivatives is on the rise as more and more institutional investors enter the fold. Recent data from Wilshire Phoenix suggests that CME Bitcoin futures are having a significant impact on the price of digital currency.
The report stated:
“CME Bitcoin futures have become important, which is not only demonstrated by the volume of transactions and open interest, but also by the influence on spot price formation.”
Launched in December 2017, CME Bitcoin Futures are now the second largest open interest BTC futures exchange. The first place belongs to OKEx, according to data analysis company Skew.
Institutions increasingly see Bitcoin as a long-term investment opportunity. Figures such as Paul Tudor Jones and Stanley Druckenmiller have also put their weight behind the flagship digital currency, potentially signaling a shift in institutional thinking.