Bitcoin’s bear market fuels allure of derivatives exchange in Hong Kong for traders to h…

Once an asset class coveted for its volatility, the slump in the value of bitcoin – which has hovered below US$9,000 since May 11 this year – has cast a shadow over the entire cryptocurrency market which is not only proving hard to shift, but is getting bigger.

However, its rangebound movement is also increasingly fuelling the appeal of crypto-futures and -derivative trading platforms, as traders look for ways to leverage up their position to multiply returns.

In Hong Kong, the increasing number of crypto-futures exchanges operating in a city which is yet to set specific regulations governing their trading and buying, highlights the challenges these operators face in maintaining market order, and spells considerable risk for investors.

One such crypto-derivative exchange that has gained strong traction since its launch in 2014 is BitMEX, which claimed on July 26 it had traded a record 1 million bitcoin in 24 hours.

Cryptocurrency tycoons are about to learn how rich they really…