₿ Crypto 🌍 Hong Kong

2016 Hong Kong Hike Sparked BitMEX’s Perpetual Futures, Altering Crypto Markets Forever

BitMEX’s 2016 launch of the first perpetual futures—inspired by a Hong Kong hike—eliminated expirations, introduced funding rates, and transformed crypto into a 24/7 leveraged trading arena, now accounting for the bulk of digital-asset volume.

📅 July 29, 2026 🕐 1 min read

1 assets impacted (Crypto). Net bias: 0 Bullish, 0 Bearish, 1 Neutral. Strongest signal: BTC/USD → 2/10 (90% confidence).

📊 Affected Assets (1)

BTC/USD

Neutral 🤖 90%

🗓️ Long-term 🌍 Global · Explicit

The article describes BitMEX launching the first perpetual future in 2016, a Bitcoin-based contract designed during a hike in Hong Kong. The instrument introduced a funding rate to track BTC spot, and its success established Bitcoin as the central asset for crypto derivatives, transforming market structure.

Catalysts

• BitMEX launched the first perpetual futures contract for Bitcoin in 2016
• The contract's design originated from a hike in Hong Kong

▼ Show FAQ (3) ▲ Hide FAQ

What did the launch of perpetual futures mean for Bitcoin trading?

It introduced a highly liquid, always-on leveraged instrument that did not require expiries or rollovers, attracting institutional and retail traders. This boosted BTC trading volumes and price discovery efficiency.

How does the funding rate mechanism affect BTC's price?

The funding rate keeps perpetual prices close to BTC spot by incentivizing traders to maintain equilibrium. High positive funding rates can indicate over-leveraged longs, sometimes preceding corrections, while negative rates suggest bearish sentiment.

Is BTC/USD still the dominant perpetual contract?

Yes, Bitcoin perpetual swaps remain the highest-volume crypto derivative, serving as the benchmark for the asset class. While other coins have their own perpetuals, BTC/USD liquidity and open interest dominate the market.

🎯 Key Takeaways

BitMEX launched the first perpetual futures contract for Bitcoin in 2016.
The idea originated during a recreational hike in Hong Kong.
Perpetual swaps have no expiry date, using a funding rate mechanism to track spot prices.
The product enabled 24/7 leveraged crypto trading without rolling futures positions.
Perpetual volumes soon eclipsed spot and traditional futures volumes, dominating crypto markets.
The innovation spurred a wave of copycat exchanges and derivative products.
Regulatory scrutiny on crypto derivatives increased as perpetuals became systemically important.

📝 Executive Summary

"We were a scrappy startup," Delo said of BitMEX back in 2016, when it launched the first perpetual future. "We thought, ‘Just get it out there. If it was any good, the market would show us.’"

❓ FAQ

What is a perpetual futures contract?

A perpetual futures contract is a derivative that has no expiry date. It uses a funding rate mechanism, paid between long and short traders, to keep the contract price tethered to the underlying spot price, allowing continuous trading without rollover costs.

How did a hike in Hong Kong lead to the creation of perpetual futures?

The founders of BitMEX brainstormed the idea during a hike in Hong Kong's hills, where they discussed the need for a crypto derivative that would not require constant rolling of futures contracts. This conversation led to the design and eventual launch of the first perpetual swap.

Why did perpetual futures change crypto trading forever?

Perpetuals provided a seamless leveraged trading experience, eliminating the friction of expiry dates. They attracted massive volume, shifting market dominance from spot to derivatives, and became the primary instrument for price discovery and speculation in crypto markets globally.

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