In 2020, the cryptocurrency derivatives market experienced rapid growth. Bitcoin (BTC) and Ethereum (ETH) derivatives saw steady expansion, with their trading volumes increasingly outpacing spot markets. In the options segment, BTC dominated approximately 90% of trading activity, while ETH accounted for most of the remaining 10%. Meanwhile, the BCH options market remained entirely untapped—until now.
Following the successful launch of BTC and ETH perpetual and options products, Bit.com—Matrixport’s dedicated derivatives exchange—is set to introduce BCH perpetual contracts and options. As one of the fastest-growing derivatives platforms in recent years, Bit.com is making history again by launching the industry’s first BCH options product, marking the beginning of a new chapter in the digital asset ecosystem.
Bit.com: The World’s Second-Largest Options Exchange
Bit.com is a high-performance, secure derivatives exchange launched by Matrixport, a Singapore-based financial services firm offering institutional-grade crypto solutions. Since its debut in August 2020, Bit.com has rapidly gained traction among both retail and institutional traders by delivering cutting-edge technology, robust security, and deep liquidity.
The platform specializes in digital asset derivatives and has quickly established itself as a top-tier player. Within just five months of operation, Bit.com achieved remarkable milestones:
- Launched BTC perpetual futures on August 3, 2020
- Introduced BTC options on August 17—reaching second place in global BTC options trading volume by the very next day
- Rolled out ETH perpetuals on December 15 and ETH options on December 21, again capturing second place in ETH options volume within 24 hours
- Surpassed $100 million in daily trading volume on October 21, 2020
- Hit $200 million in daily volume on December 17
- Achieved over $6 billion in total trading volume in its first five months
According to data from Skew, Bit.com ranks as the second-largest cryptocurrency options exchange globally, trailing only established leaders like Deribit. This achievement highlights its strong product design, advanced risk management systems, and appeal to professional traders.
What sets Bit.com apart is its early focus on options trading, a complex product that demands superior infrastructure and expertise. The exchange also formed a strategic partnership with Paradigm, a leading over-the-counter (OTC) trading solutions provider—joining an elite group that includes CME Group and Deribit. This integration allows clients to execute large OTC options trades with on-exchange clearing, enhancing efficiency and transparency.
👉 Discover how leading exchanges are shaping the future of crypto derivatives.
Why BCH? Understanding Market Demand
Bitcoin Cash (BCH) remains one of the most recognized cryptocurrencies, consistently ranking among the top ten by market capitalization. As of recent data:
- Market cap: ~$6.37 billion
- Share of total crypto market: ~0.92%
- Daily transactions: Over 148,700
- Active addresses: ~101,300
According to BitInfoCharts, BCH has shown significant growth in network activity over the past year. Transaction counts surged nearly 5x within just 10 days, driven by renewed investor interest and strong price momentum.
In early January 2025, BCH broke key resistance levels, rising over 50% in just two days to surpass $600—its highest level since 2020. Such volatility underscores the growing need for sophisticated risk management tools beyond basic spot or futures trading.
While perpetual contracts allow leveraged exposure, they carry high liquidation risks during sharp price swings. Options offer a more flexible alternative, enabling users to hedge positions, generate yield, or express nuanced market views without mandatory margin calls.
Yet despite strong fundamentals and active trading interest, no major exchange had previously offered BCH options—creating a clear gap in the market.
Filling the Void: Bit.com’s Strategic Move into BCH Options
Bit.com’s decision to launch BCH perpetual and options products is both timely and strategic. Several key factors drove this move:
1. Strong Miner Base
BCH is a proof-of-work (PoW) asset with a large community of miners who rely on predictable revenue streams. Options empower miners to:
- Sell call options to lock in future selling prices
- Earn premium income while holding long-term positions
- Hedge against short-term downside without selling their holdings
This functionality improves operational stability and reduces reliance on volatile spot prices.
2. Demand for Advanced Hedging Tools
As BCH gains institutional attention, investors seek ways to manage risk across market cycles. Options provide:
- Defined risk profiles
- Asymmetric return potential
- Customizable strategies (e.g., spreads, straddles, collars)
These tools are essential for portfolio managers, hedge funds, and active traders navigating uncertain markets.
3. First-Mover Advantage
By launching the world’s first BCH options contract, Bit.com secures a competitive edge. Early adoption attracts liquidity providers, arbitrageurs, and high-frequency traders—key players that enhance market depth and pricing efficiency.
Moreover, being first allows Bit.com to shape trading standards, influence contract specifications, and build brand recognition within the BCH ecosystem.
👉 Explore how early-mover advantages are transforming crypto trading platforms.
Expanding the Digital Asset Frontier
The introduction of BCH options marks more than just a product expansion—it represents a shift toward greater maturity in the crypto derivatives space.
Historically, innovation in crypto finance has followed a pattern: spot → futures → options → structured products. With BTC and ETH already well-established across all layers, altcoins like BCH are now entering the next phase.
Bit.com’s move signals confidence in the long-term viability of non-BTC/ETH assets and opens doors for future listings—including potential options on Litecoin (LTC), Solana (SOL), or other high-utility blockchains.
Additionally, diversified offerings help Bit.com attract a broader user base, increase platform stickiness, and strengthen its position as a leader in institutional crypto trading.
Frequently Asked Questions (FAQ)
Q: What are the benefits of BCH options compared to futures?
A: Options offer limited risk (for buyers), no liquidation risk, and greater strategic flexibility. Traders can use them to hedge, generate income via premium selling, or speculate with defined risk exposure.
Q: Is Bit.com regulated?
A: While Bit.com operates globally, it partners with regulated custodians like Cactus Custody to ensure fund security. Users should always conduct due diligence based on their jurisdiction.
Q: Can I trade BCH options with leverage on Bit.com?
A: Yes—options inherently provide leveraged exposure. You can gain significant upside from small price movements with relatively low upfront cost (the premium).
Q: When will BCH options be available?
A: BCH perpetuals and options are now live on Bit.com. Visit the platform for real-time pricing and contract details.
Q: How does Bit.com ensure platform security?
A: Bit.com uses a multi-layered risk engine built by derivatives experts and stores user funds with Cactus Custody, a third-party qualified custodian adhering to institutional standards.
Q: Why is this launch significant for the broader crypto market?
A: It expands financial engineering capabilities beyond BTC and ETH, encouraging innovation, increasing market efficiency, and attracting traditional finance participants to altcoin ecosystems.
Looking Ahead: The Future of Crypto Derivatives
Bit.com’s launch of BCH perpetual and options contracts is not just a milestone for the exchange—it’s a catalyst for wider industry evolution. By addressing unmet demand and empowering users with advanced tools, Bit.com reinforces the importance of diversification, accessibility, and innovation in digital finance.
As the crypto market matures over the next three years, we can expect to see more altcoin-based derivatives emerge. Platforms that lead this charge will define the next era of decentralized finance (DeFi) and institutional adoption.
Bit.com shows no signs of slowing down. With plans to roll out additional financial products and deepen its global footprint, it continues to push boundaries in the ever-evolving world of crypto trading.
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