Matrixport, a Bitmain spin-off, is a Singapore-based crypto services provider that has launched its own exchange focused on the options space called Bit.com. This is a derivatives exchange that will offer both futures and options contracts. While it will start off with a BTC/USD (Bitcoin/US Dollar) perpetual swap on August 3rd, it will later launch BTC options on August 17th.
This seems to be a smart move by Matrixport as the Bitcoin derivatives market has been very active recently and grew faster than the spot market in June. As reported by The Block, according to Matrixport COO, Daniel Yan, the company is poised to grow "30 to 100 times in the next five years."
Along with their futures and options products, Matrixport will also offer OTC (over-the-counter) trading, lending, and custodial services. Currently, in the space, Deribit controls the majority of the crypto options market with an 85% market share. Matrixport will certainly eat into that share, as Yan said that one professional exchange is not enough. Matrixport will also certainly improve the liquidity of the options market, as they are also approaching things differently. Matrixport wants to allow both retail and institutional investors to grow with the platform. We will receive more information on this aspect in the coming months.
While Matrixport will be competing for users against Deribit and BitMEX, they aren't coming at this to beat them, but rather to further expand the market and grow together. This is a theme I have experienced throughout the cryptocurrency market where companies would rather look to grow the industry together rather than flat outcompete and beat the competition. While beating competition may certainly be apart of the corporate strategy to increase user-bases and revenue, many companies are not targeting competitors directly - just like Matrixport is doing with Deribit and BitMEX.
Since the futures market has already grown to become 500 times bigger than the options market, it is not expected to continue to grow as rapidly, especially as more users get into the options market.
Overall, this would be a good thing for the industry and would allow users another platform to trade cryptocurrencies and get into futures and options. The added liquidity is also great for providing stabilization in the market.