Important news has been announced for conservative and risk-averse investors seeking market average returns as the market-leading Bitget crypto derivatives exchange prepares for the launch of Index Futures. The product is the latest development of the rapidly growing exchange and provides users with a low-risk instrument designed to generate market average yields based on aggregated data from a basket of assets. The native futures trading service will act as a magnet for seekers of portfolio diversification and risk minimization.
Essence of Index Futures Trading
Bitget has been on the fast track to delivering quality and innovative trading experiences for its rapidly expanding user base in recent months. Index Futures are intended to act as the latest honeypot for investors intending to reduce trading risks while diversifying their portfolios and trading big across a variety of assets. The new product on offer will rely on sport currencies to set benchmarks for indices, thus giving users an overhead view of market conditions through a prism on a range of asset classes to correlate with the overall investment climate and participant sentiment.
Legendary investor and asset management guru Warren Buffet has been advocating the advantages of index futures trading for years, underscoring their ability to mitigate risks and act as a means of maximizing capital while maintaining an affordable entry threshold. Bitget is set to leverage the general market opinion on the instrument by providing the first ever reliable crypto market index trading option and thus popularizing it across the industry.
Advantages of Index Futures
The Index Futures product will compile all the best the instrument has to offer, allowing investors to seamlessly mimic its counterpart used on the traditional commodities and financial markets.
First of all, index futures give significant portfolio diversification options. Secondly, investment risks are reduced along with entry thresholds. Thirdly, index futures are applicable across a variety of trading positions, including leverage, long and short ones. Lastly, aggregated market data is used for presenting the indices, giving investors the opportunity to earn market average returns instead of chasing elusive benchmarks or suffering losses due to erroneous judgments.
First in Line
The first product to be launched as part of the Index Futures campaign will be the BGHOT10 – a compilation of the top 10 most traded assets on the Bitget exchange. With 20X leverage, users will be able to view the performance of SOL, ADA, MATIC, ATOM, AVAX, DYDX, SUSHI, ETC, XRP, and APT as benchmarks within the basket. Given current market dynamics, the selection is a reliable means of identifying trending cryptocurrencies and a solid indicator that can be used as an index for futures trading.
Gracy Chen, the Managing Director of Bitget, states that the exchange will be the leading platform on the market to provide “clear and readable indices” for users to build their portfolios and base future actions on.
Expanding Frontiers
Bitget has been expanding its presence in crypto space and beyond in recent months, with the launch of the Arbitrum ecosystem’s ETF – the ARBETF, acting as solid evidence of the exchange’s desire to attract more users. Investors will have access to data on the most traded assets in the Arbitrum ecosystem, including weighted representations of GMX (40%), MAGIC (30%), GNS (25%) and RDNT (5%) at present, which are subject to future market changes.
The actions taken by the Bitget exchange as part of its ‘Go Beyond Derivatives’ strategy involve various initiatives aimed at consolidating its positioning as a bridge between DeFi and CeFi, as well as a gateway to the real world. The exchange recently acquired a controlling stake in the world’s largest non-custodial wallet – BitKeep at a $30 million funding round, and will be rebranding it to Bitget Wallet as part of the initiative to enter Web3 services and expand the user base.