Binance launches futures contracts! CZ: Bitcoin will continue to hold great value in the long run

Despite the strong uncertainty among global investors about the future investment market, the cryptocurrency exchange Binance has shown strong ambition by announcing the launch of a new Bitcoin (BTC) quarterly futures contract. To increase liquidity, Binance is offering a 0.02% rebate on Maker fees for the previous month.

Binance Launches Bitcoin Quarterly Futures Contracts

Cryptocurrency exchange Binance announced on June 11th that it has launched BTCUSD quarterly futures contracts trading. In the announcement, Binance stated:"Binance is excited to officially launch BTCUSD quarterly futures contracts with leverage of up to 125x, now available for trading on the Binance Futures web interface, with the mobile version to be released later."

Additionally, to boost liquidity for the contract during the initial launch, Binance will offer a 0.02% rebate on maker fees for trading with BTCUSD quarterly futures contracts from June 11th to July 10th.

Seizing a Share of the Derivatives Market

Compared to other exchanges, Binance had a slower start in the derivatives market. While other exchanges began offering contract trading services in 2018, Binance didn't launch its own contract trading platform, Binance Futures, until September 2019. Despite this, within less than a year, Binance has risen to become the third-largest exchange globally in terms of derivatives trading volume.

Now, by introducing quarterly futures contracts, Binance demonstrates a strong ambition to capture a larger share of the Bitcoin derivatives market. In an interview with Bloomberg, Binance CEO Changpeng Zhao (CZ) stated that the decision was driven by increasing user demand. He mentioned:

"We have many users trading quarterly contracts on other platforms who want us to offer futures contracts so they can trade in one place. So, we launched this product based on user demand."

Remaining Optimistic for Long-Term Development

Despite the recent market downturn in the cryptocurrency market influenced by the U.S. stock market, Zhao remains optimistic about the long-term trends of Bitcoin and the cryptocurrency industry. Over the past few months, Bitcoin has gained more attention and support due to factors such as the disruptions caused by the COVID-19 pandemic and central banks' increased quantitative easing policies. Zhao stated:

"Compared to Bitcoin and other cryptocurrencies, their market value is much smaller than traditional assets, so the volatility is higher. Prices do fluctuate, but if you look at the long term, Bitcoin will maintain a good value."

Furthermore, Zhao added that the efforts made by the Chinese government to introduce the digital yuan will help users better understand cryptocurrencies and Bitcoin.