Key Points
- BitMEX has increased its Ether perpetual swaps leverage to 200x following the SEC’s approval of spot Ether ETFs.
- This move is aimed at high-risk, high-reward traders and comes amid anticipation of increased price fluctuations in the Ethereum market.
The volatility of cryptocurrency derivatives trading has significantly increased as BitMEX, a Seychelles-based derivatives exchange, has announced a substantial increase in the maximum leverage available on its Ethereum perpetual swaps. This increase is a massive 200x, and it comes amidst market excitement over the debut of US spot Ether ETFs.
This strategic move follows the recent approval from the US Securities and Exchange Commission (SEC) for spot Ether ETFs. This advancement is expected to attract significant institutional funds into the Ethereum market, potentially leading to increased price fluctuations.
Increased Leverage for ETHUSD
Stephan Lutz, the CEO of BitMEX, believes that the changing sentiment on Wall Street may significantly increase Ether market volatility. He said, “This is why 200x leverage for the ETHUSD perpetual swap couldn’t have come at a better time.” Lutz took note of Ethereum’s impressive 100% price surge over the past year, driven by institutional adoption, and sees the new leverage as an opportunity for high-risk, high-reward traders.
BitMEX users can access the new leverage by enabling the “Leverage Booster” in their settings and selecting up to 200x for ETHUSD in their order forms. This increased leverage is only available for isolated margin positions, meaning potential losses are capped at the initial margin used for the trade.
This is not the first time BitMEX has offered high leverage. In April, the exchange launched 250x leverage for its Bitcoin perpetual swap. In 2023, BitMEX also expanded its product portfolio with over 120 new derivatives contracts, including prediction markets and pre-launch listings.
BitMEX’s Bold Move
The introduction of 200x leverage for Ether perpetual by BitMEX represents a bold move for a specific type of trader – those comfortable with significant risk. While it offers the possibility of substantial gains, it also exposes users to the potential for severe losses.
Meanwhile, the broader market’s attention remains focused on the launch of US spot ETFs and the resulting fluctuations in the Ethereum market. The outcome of BitMEX’s high-leverage venture, both for the exchange and its users, will unfold over the coming weeks and months, shaping a narrative of its own.
