CRYPTO MOVERS AND PRICES
Crypto Story of the day
Cryptocurrency exchange Bitfinex (BFX) has announced the launch of new perpetual swaps based on Europe 50 and Germany 30 equity indexes These are the first such products in the BFX suite, which now includes derivatives based on crypto indexes and FX benchmarks.
This isn’t the first time a crypto-derivatives platform has launched a similar product. In 2016, BitMEX launched China A50 futures, a bitcoin-settled equity product.
The idea behind many of these products is mixing the traditional financial world and crypto. With these derivatives, clients will be able to collateralize positions with both fiat and crypto, something that isn’t possible on a platform like Interactive Brokers, for example. BitMEX ultimately removed their Chinese equity future. While there was never much detail as to why, we had always assumed it was due to the murky regulatory status of such a product.
BFX, being an unregulated platform, is certainly wading into more regulatory risk here as equity products tend to be the most sensitive on that front. That said, BFX has a history of trying a multitude of different product approaches and strategies and if there are issues or little uptake, dropping them quickly.