The contracts will offer traders a longer time horizon for speculating on the digital asset.
Bybit announced Thursday that it will roll out a BTC/USD quarterly futures contract on Nov. 30. Two contracts will be offered at launch — BTCUSD1225, settling on Dec. 25, 2020, and BTCUSD0326, which will be settled on March 26, 2021.
Bybit says the new futures contracts have no funding fee, which means traders can hold the position without charge as long as the contracts are still in effect.
Like traditional futures contracts, Bitcoin (BTC) futures allow traders to buy and sell the digital currency at a predetermined price at a specific future date.
Bybit isn’t 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 contracts in January.
Demand for crypto derivatives is on the rise as more institutional investors come into the fold. Recent data from Wilshire Phoenix suggest that CME Bitcoin futures are having a significant impact on the digital currency’s price.
The report claimed:
“CME Bitcoin futures have grown to become significant, this is not only demonstrated through trading volume and open interest, but also by influence on spot price formation.”
Launched in December 2017, CME Bitcoin futures are now the second-largest BTC futures exchange by open interest. The top spot belongs to OKEx, according to data analytics firm Skew.
Institutions are increasingly viewing Bitcoin as a long-term investment opportunity. The likes of Paul Tudor Jones and Stanley Druckenmiller have also thrown their weight behind the flagship digital currency, potentially signaling a shift in institutional thinking.