3 - 5 minute read
Deribit, the largest crypto options exchange in the world, is set to launch a new spot trading feature on April 24, offering bitcoin (BTC) and ether (ETH) buying and selling options, in addition to derivatives. The major highlight of this feature is that the exchange will charge no fees, meaning zero margin for it, making it an exceptional tool for exchanging collateral.
Deribit, the largest crypto options exchange, has announced a new spot trading feature set to go live on April 24th. The new platform will offer BTC/USDC, ETH/USDC, and ETH/BTC pairs with no maker and taker fees. With this latest addition, the exchange now boasts a comprehensive suite of both derivatives and spot trading solutions. It is no surprise that Deribit has secured a staggering 91% share of global options open interest over $13 billion in March. Since 2016, the exchange has been a major player in bitcoin options trading and has since expanded to inverse and linear perpetual and futures markets for bitcoin, ether, and USD Coin. Last month, Deribit unveiled its trading in bitcoin volatility futures, which drew a dollar value of total open positions on the platform to over $20 billion on March 30th.
According to Luuk Strijers, Deribit’s Chief Commercial Officer, the new addition to the platform serves as an exceptional tool for exchanging collateral like BTC and ETH, which will further enhance Deribit’s overall trading experience for clients. Zero fees have the potential to attract a high number of users, and crypto traders are always looking for new ways to preserve their capital. The zero-fee feature is derived from the belief that the new platform will encourage sophisticated traders to create multi-leg complex strategies involving both the spot market and futures and options contracts.
This upgrade would provide substantial trading opportunities for both retail and institutional investors. Traders looking to capitalize on the opportunity can make transactions involving BTC, ETH, and USDC at no cost, and in a stable trading environment capable of handling any market move. Deribit has always been the leading choice for sophisticated derivative traders, and with the launch of their new spot trading, the exchange is opening doors for traders who want to make simple trades. For now, this new feature may attract substantial trading activity to Deribit, but it can also attract traders who are looking to exploit the technical effects of deep liquidity
The Bottom Line
The new zero-fee spot trading feature by Deribit is set to consolidate the exchange’s already-strong position further. There is a possibility that this new addition will attract significant new traders, and existing traders will benefit from more trading options. Deribit’s move to expand its product line also indicates a positive industry trend towards platforms that ensure a more comprehensive and customer-focused trading experience. The zero-fee feature comes at a time when traders are always trying to preserve their capital, and this move would be warmly welcomed by traders who will benefit from it. However, the exchange potentially opens itself up to traders who simply want to take profit from the temporary impact of deep liquidity, which is a major downside of the new feature. Regardless of the risks associated with the new feature, it is clear that Deribit is committed to maintaining its status as a premium crypto options exchange.
