Bitnomial Launches Margined, ‘Physically’ Settled Bitcoin Futures In The US

The US-based futures with a 35% margin are settled in actual bitcoin instead of cash, eliminating the need for bilateral trades.

• Bitnomial has launched U.S.-based, “physically” settled bitcoin futures with a 35% margin.
• The contracts allow for efficient basis trading, eliminating the need to execute bilateral trades to unwind positions.
• The new offering also enables lenders and miners to hedge at scale.

Bitcoin derivatives exchange Bitnomial has launched U.S.-based, “physically” settled bitcoin futures with a 35% margin, the company announced in a release on November 15. The contracts increase basis trading efficiency as it eliminates the need to execute bilateral trades to unwind positions and enables lenders and miners to hedge at scale.

“Today’s announcement coincides with the announcement of new strategic investors including Franklin Templeton, the O’Brien Family Office, and Belvedere Strategic Capital,” per the release. “The new investors join current investors and participants including Jump Trading, DV Chain, Consolidated Trading, Coinbase Ventures, Digital Currency Group, Electric Capital, and Bittrex Global.”

Bitnomial supports trading for customers globally through partnerships with brokerage firms ED&F Man Capital Markets, Marex, RJ O’Brien & Associates, and StoneX Financial. The first trade was executed by DV Chain and Galaxy Digital and cleared by RJ O’Brien & Associates and ED&F Man Capital Markets.

“As a derivatives block liquidity provider and early Bitnomial market participant, Genesis is excited to see the launch of additional regulated venues for trading physically settled futures products,” said Joshua Lim, head of derivatives at Genesis, an early and key supporter of the offering. “We see Bitnomial filling a niche for basis trades on deliverable futures.”

According to the release, Bitnomial initially offers trading in two quarterly contracts, bitcoin U.S. dollar futures and Deci bitcoin U.S. dollar futures, sized for institutional and retail investors and does not charge for market data or trading access. The company is a wholly-owned designated contract market (DCM) regulated by the U.S. Commodity Futures Trading Commission (CFTC).