BitMEX Just Killed the Trade That Changed Crypto Forever

BitMEX has settled and delisted XBTUSD, ending one of the most influential trades in crypto history. The Bitcoin contract ran for more than 10 years and became the template for the perpetual futures market that dominates crypto trading today.

BitMEX itself will shut down on September 23. Yet the product it created is everywhere. The Bitcoin Trade Every Major Exchange Copied XBTUSD launched on May 13, 2016. It allowed traders to bet on Bitcoin without an expiry date. Traditional futures expire on fixed dates.

XBTUSD did not. That kept traders in one continuous market instead of splitting liquidity between different contracts. BitMEX also introduced a funding system to keep the contract close to Bitcoin’s spot price.

When too many traders crowded onto one side, they paid the other side. Then came leverage. At launch, traders could control up to $100 of Bitcoin exposure for every $1 they put down.