Despite global investor uncertainty, cryptocurrency exchange Binance has demonstrated strong ambition by announcing the launch of its new Bitcoin (BTC) quarterly futures contracts. To boost liquidity, Binance is offering a 0.02% fee rebate for Makers during the first month.
Binance Introduces Bitcoin Quarterly Futures Contracts
On June 11, Binance announced the launch of BTCUSD quarterly futures contracts. The exchange stated:
"Binance is thrilled to announce the official launch of BTCUSD quarterly futures contracts, offering leverage of up to 125x. Trading is now available on the Binance Futures platform, with mobile support coming soon."
To enhance liquidity during the initial phase, Binance is providing a 0.02% fee rebate for Makers trading the BTCUSD quarterly futures contracts from June 11 to July 10.
Competing in the Derivatives Market
Compared to other exchanges, Binance was slower to enter the derivatives market. While competitors began offering futures trading in 2018, Binance launched Binance Futures in September 2019. Despite this, Binance quickly rose to become the third-largest derivatives exchange by trading volume globally within a year.
Data source: Skew
The introduction of quarterly futures contracts underscores Binance's ambition to capture a larger share of the Bitcoin derivatives market. CEO Changpeng Zhao (CZ) explained in a Bloomberg interview:
"Many users trade quarterly contracts on other platforms and requested this product so they could consolidate their trading on Binance. We launched it in response to user demand."
Long-Term Optimism for Bitcoin
Despite recent market downturns, CZ remains optimistic about Bitcoin's long-term potential. The COVID-19 pandemic and central bank policies have increased interest in Bitcoin as an alternative asset. CZ noted:
"Bitcoin's market cap is smaller than traditional assets, so volatility is higher. Prices fluctuate, but over time, Bitcoin retains strong value."
He added that China's efforts to introduce a digital yuan could further educate users about cryptocurrencies.
👉 Explore Binance Futures for high-leverage trading
FAQs
1. What are Bitcoin quarterly futures contracts?
Quarterly futures are agreements to buy or sell Bitcoin at a predetermined price on a future date, settling every three months.
2. Why is Binance offering a fee rebate for Makers?
The rebate incentivizes liquidity providers, ensuring smoother trading during the product's launch phase.
3. How does Binance's leverage compare to other exchanges?
Binance offers up to 125x leverage, competitive with major derivatives platforms.
4. What factors influence Bitcoin's long-term value?
Adoption, macroeconomic trends, and technological developments play key roles in Bitcoin's valuation.
5. How does the digital yuan impact Bitcoin?
CZ believes it raises awareness of digital currencies, indirectly benefiting Bitcoin.
6. What risks should traders consider?
High leverage amplifies both gains and losses—trade cautiously and manage risk exposure.