Binance launches European bitcoin options

Binance launches European bitcoin options

Crypto exchange Binance has announced plans to offer European bitcoin options.

Crypto exchange Binance is to expand its cryptocurrency trading offering with the launch of a European-style bitcoin (BTC) options contract.

The launch was announced on 28 December and follows a successful testnet trial in November. The press release also said that the new options contract would be settled in Tether (USDT).

As part of the announcement, Binance cited growing demand for BTC options as the reason for launching the new product. In early December, bitcoin options surpassed the US$1 billion mark bei Bitcoin Revolution for the first time. Total open interest rose to nearly US$6 billion.

Commenting on the launch, Binance CEO Changpeng Zhao said Bitcoin, which recently reached US$28,000, underscored the rising level of investment in the crypto space. He added:

„The growth of the crypto industry is largely due to a combination of factors. Among them, for example, increased public education and institutional interest, innovations in DeFi protocols and smart contracts, and the development of a robust derivatives market.“

In April, Binance, like a growing number of other exchanges, introduced US-style bitcoin options trading

The main difference between the American and European formats is that traders can only exercise the latter when the contract expires.

Binance previous bitcoin options were also criticised for being one-sided, as users could not „write“ options and claim the premium for themselves. As a result, Binance options were generally more expensive due to the inability to arbitrage.

European BTC options are just one of many Binance announcements in December. As Cointelegraph reported, the exchange recently began offering Segregated Witness (SegWit) support for bitcoin deposits.