BitMEX is kicking the tires on options; launch could come in 12 months

Exchanges • April 14, 2019, 6:01PM EDT

BitMEX, one of the largest cryptocurrency exchange operators, is looking to expand into new derivatives products tied to the nascent market, its CEO said on an industry podcast.

Arthur Hayes, a former Citigroup trader, said the firm — which is known for its perpetual futures tied to bitcoin — is kicking the tires on options, a move that could put it up against rival Deribit. "We hope to possibly have our own options platform in maybe 12 to 18 months," Hayes said during an appearance on Venture Coinist Podcast.

"We have somebody working with some university professors on a complicated new way of doing this," Hayes said. Options, like futures, provide a way for investors to hedge their positions in an underlying asset. Specifically, an option provides a trader the right to purchase a certain amount of an asset at a set price in the future.

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Frank Chaparro is the Editor At Large at The Block. Chaparro started his career at Business Insider, where he specialized in the intersection of digital assets and Wall Street, market structure, and financial technology. Soon after joining Business Insider out of Fordham University, Chaparro was interviewing top finance and tech executives, including billionaire Mark Cuban, “Flash Boys” star Brad Katsuyama, Cboe Global Markets CEO Ed Tilly, and New York Stock Exchange President Tom Farley. In 2018, he become a sought after reporter in the crypto world, interviewing luminaries such as Tyler Winklevoss, the cofounder of Gemini, Jeremy Allaire, the CEO of Circle, and Fundstrat head Tom Lee. He runs his own podcast The Scoop and writes a biweekly eponymous newsletter. He leads special projects, including The Block's flagship podcast, The Scoop. Prior to The Block, he held roles at Business Insider, NPR, and Nasdaq. For inquiries or tips, email [email protected].