Criptoexchange Binance has announced the launch of Bitcoin options contracts ‘European style’ on its trading platform.
The large cryptoexchange Binance is ready to expand its cryptomoney trading catalogue with the launch of a European-style Bitcoin Options Contract (BTC).
Announced on December 28, the launch follows a successful network test carried out in November. The press release also revealed that the new option contract will be priced and settled in Tether (USDT).
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As part of the announcement, Binance identified the growing appetite for BTC options as the reason for the new product’s debut. In early December, Bitcoin options crossed the $1 billion mark for the first time with total open interest almost reaching the $6 billion mark.
Commenting on the launch, Binance CEO Changpeng Zhao said that the fact that Bitcoin recently reached $28,000 underscored the growing level of investment in the crypto coin space, adding
“The growth of the crypto industry can be attributed in large part to a combination of factors, including broader public education and institutional interest, innovation in DeFi protocols and smart contracts, and the development of a robust derivatives market.”
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In April, Binance joined the growing ranks of exchanges that are deploying Bitcoin options trading with the launch of US-style BTC options contracts. The main difference between the US and European format is that traders can only exercise the latter at the expiry of the contract.
Binance’s previous iteration of Bitcoin options was also criticised for being one-sided, as users could not ‘write’ options and pocket the premium. As a result, Binance options were generally more expensive due to the impossibility of arbitration.
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The announcement of BTC’s European options is Binance’s last in a busy December. As previously reported by Cointelegraph, the exchange has recently begun offering Segregated Witness, or SegWit, support for Bitcoin deposits.