Index Futures are live on Bitget
What are Index Futures?
Bitget offers a variety of crypto asset futures contracts like BTCUSDT and ETHUSD, which are based on a spot market asset as the underlying currency. Index Futures differ from these contracts because they track a bundle of assets rather than one single asset. When an investor buys or sells Index Futures, it's the equivalent of buying and selling a bundle of spot tokens that track a certain index and can help investors reduce their exposure and diversify their portfolios.
Simply put, Index Futures are benchmarked against the fund of spot currencies. These assets often correlate by asset class or index, thus reflecting macro market changes. The recently-launched BG HOTUSDT, for example, is composed of 'hot' coins on the Bitget exchange.
The benefits of Index Futures
Reports have shown that almost 80% of actively managed funds have yet to outperform the SP 500. These fund products, which carry the weight of countless Wall Street elites, look pale in front of major market indices. It’s perhaps why Warren Buffett frequently recommends a low-cost index fund as the most sensible investment.
Investors frequently fall into the fallacy that the market average is easy to beat, but as studies have shown, fund managers consistently underperform. This is why Bitget’s Index Futures are benchmarked against a bundle of coins from a particular asset class, which can closely track the changes in those market conditions and obtain the market's average returns, also known as the beta return.
Our Index Futures contracts have the following advantages:
1. Index Futures can effectively reduce risks in investment
We all know the saying, "don't put your eggs in one basket." Index Futures spreads your exposure by building a portfolio of multiple currencies. This can effectively prevent the impact of a single currency on your account during extreme market conditions and effectively reduce unsystematic risks in investment.
2. Index Futures provide users with more trading options
Index Futures fully inherit the basic trading functions of platform contracts: long, short, and leveraged trading. These functions can greatly enrich users' trading choices in different market conditions.
3. Index Futures can make investments clearer and more convenient
The current cryptocurrency market has a huge number of digital currencies (as of January 4, 2021, there were 1910 different cryptocurrencies), which will continue to increase. As such, individual investors might not fully understand the value and meaning behind each currency. Investors miss out on many excellent investment opportunities due to asymmetrical information-gathering capabilities.
Index Futures can represent the overall market changes of their assets and are composed of coins selected by professional analysts, which can greatly save an investor's time collecting information. Users can analyze according to different index directions, choose valuable investment directions, and decide on their own investments with clarity. Each Index Futures contract comprises easy-to-understand names and explanations, allowing users to understand their investment horizons more clearly.