BTSE Exchange Offers Futures Contracts Tracking Tether Gold and Priced in Bitcoin

BTSE Exchange Offers Futures Contracts Tracking Tether Gold and Priced in Bitcoin

BTSE's new perpetual futures contract is priced in bitcoin, and follows the price of gold via Tether's XAUT token. (Credit: Shutterstock)

Bitcoin has has long been feted as a new form of money, a to the establishment, even as a digital equivalent to gold, but it’s not often prized for its stability. That could change with the introduction of a new futures contract.

Crypto exchange BTSE has taken the unorthodox decision to price tether gold futures contracts in , rather than in the more conventional U.S. dollar.

Here’s how it works: It’s a perpetual contract – a future without expiry – that tracks the value of one tether gold (XAUT) token, which itself of one troy ounce of physical gold. It’s also built on the ERC20 token standard, which means it can be pretty much traded on any crypto exchange.

Unlike other contracts, this one is priced in bitcoin. While the USD spot price of XAUT tokens is currently $1,720, according to , BTSE’s contracts are trading around the 0.17 BTC mark.

The contract allows traders to compare and speculate on whether bitcoin or gold will turn out to have the most demand and outperform the other, as a new store of value.

“Imagine it as gold versus bitcoin,” a BTSE spokesperson said.

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