Binance Launch European-style Bitcoin Options Contracts

December 28, 2020 3:51 PM UTC

Binance, the giant cryptocurrency exchange in terms of trade volume, has launched a new type of “European-style” Bitcoin options contract on its platform. Based on the report, a new options contract will support traders to issue their own contracts by clarifying things.

According to the announcement, the main reason to introduce the new product is the growing demand for Bitcoin options. It is the most convenient solution to invest in the leading cryptocurrency. In November, Binance carried out several successful testnet trials. Market data show that Bitcoin options surpassed the $1 billion milestone for the first time, with total open interest hitting $6 billion in December 2020.

While adding a new trading option into the catalog, Changpeng Zhao, CEO of Binance, said: 

“The crypto industry’s growth is in good part attributable to a combination of factors, including wider public education and institutional interest, innovation in DeFi protocols and smart contracts, and development of a robust derivatives market.”

Bitcoin Price Surge to All New High

Binance recently joined Segregated Witness, or SegWit, support for Bitcoin deposits. As per the announcement, Binance users can transfer digital assets to SegWit wallets by simply picking the BTC (SegWit) network.

 SegWit is a significant upgrade for Bitcoin that makes transactions more secure and efficient. According to data from transactionfee.info, more than half of Bitcoin payments use SegWit, as of now.

Market analysis shows that Bitcoin still drives the crypto market, despite limited transaction capacity. At the reporting Bitcoin’s dominance rate was over 68%. As per data from metrics site CoinMarketCap, the price of the largest cryptocurrency, Bitcoin, hit a new all-time high of $28,240, on December 27.

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