Bitmex Just Killed The Trade That Changed Crypto Forever

What Happened

XBTUSD launched on May 13, 2016. It allowed traders to bet on Bitcoin without an expiry date.

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. BitMEX later raised the ceiling to 250x for users who activated its Leverage Booster feature in April 2024.

The format is now moving beyond crypto. Kalshi filed with US regulators in August to offer stock index perpetual futures.

The design is pushing into ordinary stock markets. Kalshi filed with US regulators in August to list stock index perpetual futures, and Kraken’s parent company plans Hyperliquid perpetuals for Americans through a regulated venue.

That record covers hacks, not trading losses. BeInCrypto reported that Celsius sued five BitMEX entities on September 12 over 6,360 Bitcoin lost to forced liquidations in the March 2020 crash.

Market Context

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.

Traditional futures expire on fixed dates. XBTUSD did not. That kept traders in one continuous market instead of splitting liquidity between different contracts.

BitMEX says perpetual contracts account for more than 75% of all crypto trading volume.

That claim refers to customer funds lost through security breaches, rather than losses from trading.

XBTUSD is gone. The market structure it created is still expanding.

Why It Matters

BitMEX itself will shut down on September 23. Yet the product it created is everywhere.

The Bitcoin Trade Every Major Exchange Copied

Details

The model spread quickly. Binance, Bybit, OKX and Hyperliquid now run their own versions.

Now Wall Street Wants Perpetuals Too

Kraken’s parent company also plans to bring Hyperliquid perpetuals to US traders through a regulated venue.

“12 years. 0 customer funds lost. Every bull and bear cycle crypto has ever had,” BitMEX wrote in its closing post.

Celsius, for example, sued five BitMEX entities on September 12 over 6,360 Bitcoin lost during forced liquidations in the March 2020 crash.

Where the Perpetual Swap Design Is Spreading Now

“12 years. 0 customer funds lost. Every bull and bear cycle crypto has ever had,” BitMEX wrote that in its closing post.

The product outlived the company that invented it.

The post BitMEX Just Killed the Trade That Changed Crypto Forever appeared first on BeInCrypto.