The exchange price war continued Thursday, as Paxos' itBit announced users will receive maker rebates of 3 basis points on all bitcoin trades with immediate effect.
The New York-based crypto exchange has been offering Ethereum rebates since last month, hoping to attract new business and increase its market share, its general manager recently told The Block. So far, he says, they have proven popular "across retail and institutional” and helped boost volumes; likely expecting the same traction for bitcoin rebates.
In traditional markets, rebates are given to traders who increase a platform's liquidity, while charging traders who take liquidity, although this controversial system is subject to review by the SEC. Currently, itBit is the only crypto-to-fiat exchange to offer rebates to market makers.
Bitcoin trade rebates will be paid in fiat, the firm said.