Bitmain Spin-Off Launches Crypto Exchange to Go After Booming Options Market

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27 July 2020

Crypto services provider Matrixport has launched its own derivatives exchange to go after surging activity in the options space.

  • The Singapore-based company said the new derivatives exchange, dubbed Bit.com, would first list a BTC/USD perpetual swap on Aug. 3, before adding a series of options contracts on Aug. 17, according to a report by The Block.
  • Monthly options volumes have increased sharply from $1 billion in January to $2.5 billion by June; it spiked to over $3 billion in May's halving event.
  • Bit.com said it wants to rival Deribit, the Panama-based exchange that constitutes 88% of market share, according to data site Skew.
  • That Matrixport opted to launch a bitcoin/U.S. dollar perpetual swap could be seen as a bid to challenge market leader BitMEX – its "perp" has nearly $800 million in open interest at press time.
  • Matrixport also provides over-the-counter trading, lending and custodial services; it was spun out of Bitmain in 2019 and both the chipmaker and co-founder Jihan Wu remain major shareholders.
  • Earlier this year, Bloomberg said Matrixport was seeking to nearly triple its valuation to $300 million in a capital raise; COO Daniel Yan said the $300 million valuation was misreported.

See also: Odds of Bitcoin Hitting Record High in 2020 Are (Slightly) Up, Options Data Suggests