Bitfinex Derivatives has announced the launch of two new trading pairs.
These are the XRPF0:BTCF0 pair and the ALGOF0:USTF0 pair of perpetual contracts.
The former allows trading XRP (Ripple) into bitcoin, and vice versa, while the latter adds the ability to trade Algorand into Tether for the first time on Bitfinex’s derivatives platform.
Possibility to trade derivatives contracts with Bitfinex Derivatives
With this pair, Bitfinex offers a new type of perpetual derivative contract that refers to the Algorand (ALGO) and Tether (USDt) token pair.
The pair was launched on 17 September, and the Mark Price is determined on the basis of the BFX Composite Index (BFXCI).
XRPF0:BTCF0 is an addition to the existing XRPF0:USTF0, which allowed to trade the price of XRP in USDt, while this new one allows to trade it in BTC, as it is a derivative contract related to the XRP/BTC pair.
Bitfinex Derivatives is a derivatives platform accessible through the well-known crypto exchange Bitfinex, and allows trading derivatives contracts with leverage of up to 100x.
The CTO of Bitfinex, Paolo Ardoino, commented saying:
“We’re delighted to announce the addition of Algorand and Ripple, bitcoin to the growing portfolio of perpetual swaps available to trade on the exchange. We anticipate great interest in these products, particularly among funds and professional investors for hedging purposes and to manage risk”.
A week earlier, the platform had already added perpetual swaps for XRP, Monero and Terra in USDt, and a month ago it added Solana as well.
Growth of crypto derivatives offerings
The crypto sector is becoming increasingly interesting for professional or institutional investors, even those who are accustomed to using derivative instruments that have not been introduced to the crypto sector for many years.
Because of this, and the fact that new cryptocurrencies (such as Solana) are gaining success all the time, crypto markets are not yet particularly generous in offering derivative products to professional investors.
Bitfinex is one of the most customer-oriented crypto exchanges, so it is hardly surprising that its derivatives section continues to expand. To date, it has around forty pairs, which is far fewer than what the same exchange offers on the spot markets.
It is foreseeable that crypto derivatives could increase significantly in the future, especially should demand increase due to a second bullrun in 2021.