Binance Futures launches BITO and Treasury ETF contracts

Binance Futures enhances its offerings with new USDT-settled perpetual contracts for prominent U.S.-listed ETFs, including BITO and Treasury ETFs.

Today, Binance Futures expanded its offerings by launching three new USDT-settled perpetual contracts, tied to prominent U.S.-listed ETFs. This move is part of Binance's strategy to enhance its position in the evolving landscape of tokenized traditional finance.

What New Contracts Did Binance Futures Launch?

On July 27, Binance Futures introduced the following contracts:

  • BITOUSDT - linked to the ProShares Bitcoin ETF (BITO)
  • TMFUSDT - tied to the Direxion Daily 20+ Year Treasury Bull 3X ETF
  • TBTUSDT - associated with the ProShares UltraShort 20+ Year Treasury ETF

The launch times for these contracts were staggered, with TMFUSDT opening first at 13:30 UTC, followed by TBTUSDT at 13:35 UTC, and BITOUSDT at 13:40 UTC. Each contract utilizes USDT for settlement and allows traders to maintain positions indefinitely, without an expiration date.

How Do These Contracts Work?

All three contracts support leverage of up to 25x, with a minimum order size of 0.01 units. Traders must place orders with a minimum notional value of 5 USDT, and funding for these contracts occurs every eight hours. The funding rate is capped between negative 2% and positive 2%, with a base interest rate of 0%.

What Does This Mean for Traders?

The introduction of these perpetual contracts allows Binance users to engage in trades linked to traditional financial instruments without needing to purchase shares directly. This flexibility also supports Binance's larger goal of evolving into a "super app," offering a wide array of financial services including trading, payments, and investment products.

Are There Regional Restrictions?

While these contracts are based on U.S.-listed ETFs, it’s important to note that they may not be available to traders in every region. Binance advises that the availability of the contracts does not automatically extend to U.S. customers, as trading on Binance.com is distinct from Binance.US, which operates under different governance structures.

What’s Next for Binance?

As Binance continues to enhance its product offerings, it remains committed to creating a comprehensive trading environment that allows users to both trade Bitcoin and engage with government bonds. The exchange may adjust the leverage limits and other parameters of these products as market conditions evolve.

Key Takeaways

  • Binance Futures launched three new USDT-settled perpetual contracts: BITOUSDT, TMFUSDT, and TBTUSDT.
  • The contracts allow for up to 25x leverage with a minimum order size of 0.01 units.
  • Funding payments are settled every eight hours, with a funding rate capped between negative 2% and positive 2%.
  • Availability may vary by region, particularly for U.S. customers.
  • The new products are part of Binance's strategy to evolve into a comprehensive financial super app.

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