Bitmex to Distribute BCH After Launching Bitcoin Cash Features
Bitmex traders should now brace themselves to speculate on the cost of bitcoin cash following the exchange’s activation of the futures trading. Holders will receive BCH but in the form of BTC, a process that is set to come to fruition before the end of the year.
Bitcoin cash has been making headline news in the financial market after CME's announced that they would be permitting bitcoin future contracts. BCH seems to be gaining trust among wallets, vendors, and exchanges after its arrival at Bitmex.
Another exchange that has adopted bitcoin cash future contracts is the Hong Kong's bitcoin Mercantile Exchange famous for its futures trading. This exchange offers a staggering 100x leverage on bitcoin as well as other cryptocurrencies.
Taking up BCH futures is good news for digital currency enthusiasts and for the speculators. Digital currency enthusiasts see it as a big opportunity of cashing in profits considering that the BCH is well-suited to futures trading. This move will see believers taking a long at the BCH, skeptics holding on and waiting to see the direction it takes and agnostic choosing either way.
What is the Contract on Bitcoin Cash?
The full BCH contract states that there will be a 5% entry taker fee as well as an exit taker fee on every initial margin. All deals will be paid in BTC with a minimum increase in price being 0.0001 BTC. BCH future contracts had a total volume of 1570 BTC at the time bitcoin cash future news got published.
This amount is set to increase gradually as news about the bitcoin cash spreads across the financial world. It is important to note that those traders that had initially gone long on the bitcoin cash had a rough time as the currency began on a low due to BTC popularity. This could change, though, as traders and other participants start accepting and spreading the news about this new currency. Profits could be realized on either side.
The Big BCH Distribution
Bitcoin holders have been eligible for an equal share of the bitcoin cash after its launch on August 1, 2017. Exchanges all over the world began distributing the cash immediately after the announcement, with only a few playing the wait and see card. The few that delayed were still not sure of the best distribution approach to take.
Bitmex which was among those that took the delay tactic has finally decided on the best way forward. They are now preparing to sell all of their BCH and distribute the same to their clients but in the form of BTC.
Stakeholders in this sector see this as a possibility of flooding the market with BCH in the near future assuming that Bitmex has yet to find a private distributor. This is the same case with another big Bitcoin Investment Trust Sponsor Grayscale Investments, which apparently plans to release up to 175,000 BCH by the end of February 2018. No one knows exactly how this move will affect the price of this currency, but Bitmex traders see it as an opportunity to make some profits. It remains to be a wait and see game.