BFX Launches Its First Products Based on Equity Indexes

September 30, 2020 10:01 AM
Crypto and Bitcoin Market Cap Story of Day

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Crypto was flat to marginally weaker this morning as volatility continues to compress. Volumes have remained relatively constant for the last 5-days and about 50% of the 30-day average.

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.

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FRNT Financial is a technology and sales layer that offers institutional and accredited investors access to various forms of exposure to crypto-assets. You can subscribe to FRNT Financial Morning Note at https://www.frnt.io/morningnote