BitMEX Considers Selling $100M in Digital Assets Amid Insurance Fund Rebalancing

BitMEX, a crypto derivatives trading platform, is considering selling around $100 million worth of digital assets, including Tether (USDT) and Ethereum (ETH), from its insurance fund.

This move is part of the exchange’s fund reallocation process, which is set to take place over the coming weeks.

While BitMEX has not disclosed the details of its banking partners or the exact amount of funds to be reallocated, its insurance fund dashboard revealed that it currently holds $80.2 million worth of USDT and 12,751.1611 ETH as of September 27.

Additionally, the exchange holds a substantial amount of Bitcoin (XBT), approximately 36,769.3244 XBT, equivalent to nearly $1 billion.

BitMEX has not provided further information regarding the specific assets it plans to sell or the reasons behind this reallocation. However, the exchange has assured users that these transactions will not impact their trading activities, positions, deposits, or withdrawal capabilities.

The insurance fund maintained by BitMEX plays a critical role in safeguarding traders from automatic de-risking when facing liquidated positions.

Its primary purpose is to prevent insolvency by ensuring that traders do not incur losses exceeding their initially posted margin, thereby maintaining the platform’s stability and integrity.