BitMEX Ends XBTUSD Perpetual Contract After Over a Decade

BitMEX has reached a settlement and removed XBTUSD from its platform, closing a chapter on one of crypto's most significant trading instruments. The Bitcoin contract, active for over ten years, served as the blueprint for the perpetual futures markets that now dominate the industry.

The exchange itself is set to close its doors on September 23. Nevertheless, the product it pioneered remains widespread.

The Bitcoin Product That Became an Industry Standard

When XBTUSD first appeared on May 13, 2016, it gave traders the ability to speculate on Bitcoin's price without ever facing a settlement date.

Standard futures contracts come with fixed expiration periods. XBTUSD broke from that model, keeping participants in a single, uninterrupted market rather than fragmenting liquidity across various contract months.

BitMEX also implemented a funding mechanism to tether the contract's price to Bitcoin's spot market. When a large number of traders piled into one position, they were required to compensate those on the opposite side.

Leverage was another key feature. At its launch, the platform offered up to $100 in Bitcoin exposure for every $1 in margin. The company increased this limit to 250x in April 2024 for those who opted into its Leverage Booster.

The concept began as a rough sketch on a napkin at a Hong Kong bar.

Arthur Hayes, Ben Delo and Samuel Reed continuously pondered the same issue: why should a market that operates around the clock be constrained by expiring futures contracts?

XBTUSD, the world's first perpetual swap, had no expiration date. It used a funding rate to stay aligned with spot prices.

The rest, as they say, is history. pic.twitter.com/6yXChrnbb3

— BitMEX (@BitMEX) September 17, 2026

Rivals quickly adopted the model. Today, Binance, Bybit, OKX, and Hyperliquid all offer similar instruments.

According to BitMEX, perpetual contracts currently make up over 75% of all crypto trading volume.

Traditional Finance Moves Toward the Model

The concept is now making inroads beyond digital assets. In August, Kalshi submitted a filing to US regulators to introduce stock index perpetual futures.

The parent company of Kraken is also preparing to offer Hyperliquid's perpetuals to US customers via a regulated platform.

"12 years. 0 customer funds lost. Every bull and bear cycle crypto has ever had," BitMEX stated in its farewell message.

That achievement applies to funds lost through security failures, not trading losses.

Celsius, for example, filed a lawsuit against five BitMEX entities on September 12, seeking recovery of 6,360 Bitcoin that were liquidated during the market collapse in March 2020.

Though XBTUSD is no more, the market framework it established continues to expand.

Where the Perpetual Design Goes From Here

The format is now appearing in conventional equity markets. Kalshi has filed with American regulators to launch stock index perpetual futures, while Kraken's parent is set to provide Hyperliquid perpetuals to US users through a regulated entity.

"12 years. 0 customer funds lost. Every bull and bear cycle crypto has ever had," BitMEX wrote in its closing post.

That statistic refers to funds protected from hacking, not losses incurred from trading activities. On September 12, Celsius took legal action against five BitMEX entities over 6,360 Bitcoin lost in forced liquidations during the March 2020 downturn.

The product has outlasted the exchange that brought it to life.