BIT exchange has unveiled the launch of XRP-linked options trading on its cryptocurrency derivatives platform. According to the announcement, this new product will allow investors to participate in the XRP market without holding the asset.
Options are derivatives that enable traders to purchase or sell the underlying asset at a pre-established price on or before a specified date. These products give an investor the right to buy or sell the underlying asset at a predetermined price and date.
BIT Exchange Unveils XRP Options On Trading Platform
In a blog post published on Thursday, August 17, BIT exchange unveiled XRP options as the latest product on its crypto trading platform. XRP will now become the exchange’s sixth token available for options trading, joining Bitcoin (BTC), Ether (ETH), Cardano (ADA), Toncoin (TON), and Milady Coin (LADYS).
According to BIT’s announcement, this move responds to the “surging” interest in the XRP market. The cryptocurrency exchange will work with institutional liquidity provider OrBit Markets to provide initial liquidity.
With the infusion of initial liquidity by OrBit Markets, BIT exchange claims that investors and traders will be able to manage and hedge their portfolio risks effectively. Meanwhile, the company intends to settle all profits and losses in US dollars.
Justin Buitendam, BIT’s Global Head of Institutional Sales, reacted in a statement:
We are proud to become one of the first exchanges making XRP options trading accessible to both institutional and retail traders, enabling long and short for options traders at the same time. We look forward to bringing this product to more traders and investors alike across the globe.
As of this writing, XRP is valued at $0.5717, according to CoinGecko data. The token ranks fifth-largest cryptocurrency with a market cap of roughly $30.22 billion.
XRP Continues To Garner Interest In Crypto Market
As implied earlier, BIT’s decision to introduce XRP options trading on its platform comes when interest in the token rises. This revolves around the partial victory of Ripple – the company behind XRP – against the United States Securities and Exchange Commission (SEC).
In July, the US District Judge ruled that XRP is not classified as a security when sold to retail investors but could be considered one when sold directly to institutions. As a result of this ruling, there have been numerous exchanges, including Coinbase, Kraken, and Gemini, relisted the asset on their trading platforms.
At the same time, institutional traders continue to bet on XRP and XRP-related investment products. According to the latest CoinShares report, the previous week marked the 16th consecutive week investors poured cash into XRP.
In a recent development, the Securities and Exchange Commission filed an “interlocutory appeal”, challenging the court’s decision on XRP’s status as a security.
XRPUSDT price fall further downwards on daily timeframe | Source: XRPUSDT chart on TradingView
Featured image from iStock, chart from TradingView
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