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.

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