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

Matrixport has set up its own derivatives exchange and now wants to take on Deribit, the market leader for crypto options.

Jul 27, 2020 at 4:58 p.m. UTC
Updated Sep 14, 2021 at 9:36 a.m. UTC

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.
The Festival for the Decentralized World
Thursday - Sunday, June 9-12, 2022
Austin, Texas
Save a Seat Now

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Trending

1
CoinDesk - Unknown
Exploring the Star Atlas Metaverse

A review on the space-themed, multiplayer gaming metaverse based on the Solana blockchain.

A review on the space-themed, multiplayer gaming metaverse based on the Solana blockchain.

CoinDesk - Unknown
2
CoinDesk - Unknown
Argentinian Crypto Exchange Buenbit Cuts 45% of Staff Due to Tech Industry Downturn

The company will focus on its current operations in Argentina, Mexico and Peru, and freeze previous plans to expand into other countries.

The company will focus on its current operations in Argentina, Mexico and Peru, and freeze previous plans to expand into other countries.

CoinDesk - Unknown
3
CoinDesk - Unknown
Bitcoin Range-Bound; Support at $27K, Resistance at $33K

Technical indicators are neutral, and upside appears limited from here.

Technical indicators are neutral, and upside appears limited from here.

CoinDesk - Unknown
4
CoinDesk - Unknown
How Do You Value Metaverse Projects? We Tried. Here’s What We Found

On a per-user basis, the valuations for Decentraland, Axie Infinity and The Sandbox look quite high. But just picking the right metric is tough in this loosely defined niche.

On a per-user basis, the valuations for Decentraland, Axie Infinity and The Sandbox look quite high. But just picking the right metric is tough in this loosely defined niche.

CoinDesk - Unknown