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BitMEX shutdown sparks worries that crypto derivatives consolidation is accelerating

BitMEX says trading will end Sept. 23, and its utility token BMEX fell more than 90% after the wind-down plan.

Reported · Written up by our desk · Market Structure

BitMEX is shutting down its crypto derivatives exchange, a move that Cointelegraph says is fueling concerns that the industry is moving into a new phase of consolidation as regulatory and compliance pressures rise and liquidity concentrates among the largest licensed venues.

The exchange, which helped pioneer perpetual swaps, announced that trading is scheduled to end on Sept. 23 after a strategic review by its parent company, HDR Global Trading. Cointelegraph reports that the shutdown also triggered a sharp sell-off in BitMEX’s utility token, BMEX, which plunged more than 90%.

Cointelegraph cites CryptoQuant data showing BitMEX’s daily Bitcoin futures volume started declining around May 2021 and never regained its 2020 daily peak range of between $1 billion and $5 billion.

The outlet also points to market-share erosion, noting BitMEX was ranked ninth among derivatives exchanges by CoinGecko in August 2023 with a 0.9% trading-volume share, and that by 2025 it no longer appeared among the firm’s top 10 perpetual exchanges even as annual perpetual trading volume across major platforms rose 47.4% to a record $86.2 trillion.

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