Bybit Debuts $100M Support Fund For Institutional Traders

Published: Nov 29, 2022
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Bybit, a well-known crypto derivatives exchange, has launched a support fund for its institutional clients at a fitting time for the crypto industry. It has announced a $100 million fund that’ll help institutional traders and market makers facing financial difficulties to stay afloat.

The crypto sector is facing tough times propelled by the recent collapse of FTX, a top-five crypto exchange. FTX became insolvent due to the misuse of customer funds and filed for bankruptcy, revealing $9 billion in liabilities and just over $1 billion in liquid assets. Binance, the world’s biggest crypto exchange by trading volume, tried to bail out FTX but backed out after carrying out due diligence.

Bybit’s support fund constitutes loans that’ll be given to eligible applicants with no interest rate, and to qualify, the institutional trader must be active on Bybit or other exchanges. The maximum amount that can be allocated to an applicant is $10 million, and they must use it to trade on Bybit.

Bybit’s support fund mirrors a recent move made by Binance, which recently announced a $1 billion fund to prop up crypto firms and projects that “through no fault of their own, are facing significant, short-term, financial difficulties.” The exchange says the fund could increase to $2 billion “in the near future”.

2022 has been an unfavorable year for the crypto sector. The market experienced a widespread slump that wiped over $2 trillion off the value of various tokens by September, and the recent FTX saga aggravated the situation. This year has witnessed the bankruptcies of several well-known crypto exchanges, including Celsius, Voyager, FTX, and most recently, BlockFi. Many firms will surely need the kind of support offered by Binance and Bybit.

Institutional traders intended in Bytbit’s support fund can reach out through their account manager and new customers can reach out through email, the company says.