Binance-backed derivatives exchange FTX launches bitcoin options

Cryptocurrency derivatives exchange FTX, in which Binance acquired an equity stake recently, has launched bitcoin options.

The options, currently unavailable to U.S. users, went live on Sunday, said FTX, adding that some features such as limit order are yet to be implemented.

FTX's bitcoin options are cash-settled to U.S. dollars (USD), and like its futures, these can be traded on margin.

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Sam Bankman-Fried, founder and CEO of FTX, tweeted that the options hit $1 million of volume within two hours of its launch, while in the first 12 hours, it traded about 2,000 contracts. 

FTX was launched in May 2019 and has been aiming to gain market share in the space which is currently dominated by BitMEX, OKEx, and Huobi, according to data from Skew. Binance invested “tens of millions" in FTX last month.

The cryptocurrency derivatives market, in general, is heating up. CME Group is also expected to launch bitcoin options today. OKEx and Bakkt also recently launched bitcoin options. Deribit and LedgerX exchanges have been offering options trading since months. 

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Yogita Khatri is a senior reporter at The Block, covering all things crypto. As one of the earliest team members, Yogita has played a pivotal role in breaking numerous stories, exclusives and scoops. With nearly 3,000 articles under her belt, Yogita holds the records as The Block's most-published and most-read author of all time. Prior to joining The Block, Yogita worked at crypto publication CoinDesk and The Economic Times, where she wrote on personal finance. To contact her, email: [email protected]. For her latest work, follow her on X @Yogita_Khatri5.