BitMEX Adds Hyperliquid Copy‑Trading to Its Platform
Centralized exchange expands its copy‑trading suite, letting users mirror top traders from the leading perpetual‑futures DEX.
Overview
Crypto‑derivatives exchange BitMEX announced the rollout of “Hyperliquid Copy Trading,” a feature that automatically replicates the positions of selected traders on Hyperliquid—the decentralized perpetual futures protocol that currently commands the highest trading volume and open interest among perp DEXs. The service is designed to bridge the gap between centralized and decentralized trading ecosystems, allowing BitMEX customers to execute copied trades through the familiar CEX interface while retaining access to built‑in risk‑management tools such as take‑profit and stop‑loss orders.
How the Feature Works
- Users can link up to five Hyperliquid traders at any time.
- When a chosen trader opens, modifies, or closes a position on Hyperliquid, BitMEX mirrors the same action on the subscriber’s account.
- All trades are executed on BitMEX’s order book, meaning that users benefit from the exchange’s liquidity, order‑matching engine, and custodial safety.
- Basic safeguards—including configurable profit‑target and stop‑loss levels—can be applied to each copied strategy.
A BitMEX spokesperson explained that the company leveraged the open‑source code of Hyperliquid’s L1 contracts to monitor on‑chain positions and feed that data into its existing copy‑trading infrastructure. “It’s an opportunity for users to make the same perp trades as top Hyperliquid traders and have that automatically reflected to their accounts,” the spokesperson told The Defiant.
Context: The Rise of Perpetual DEXs
Hyperliquid has quickly become the dominant platform for decentralized perpetual futures, recording roughly $13 billion in 24‑hour trading volume—about 20 times the volume reported by BitMEX over the same period. Although Hyperliquid’s open interest ($5.8 billion) trails BitMEX’s $14.5 billion, the discrepancy highlights a shift in where high‑frequency, high‑leverage traders are allocating capital.
The trend mirrors broader market dynamics, where decentralized exchanges (DEXs) have begun to capture a larger share of derivatives activity. In recent months, on‑chain platforms have outpaced many centralized counterparts in both volume and user engagement, prompting CEXs to explore hybrid solutions that combine the convenience of custodial trading with the innovation of DeFi protocols.
Strategic Implications for BitMEX
BitMEX, a pioneer of the perpetual swap since its 2016 launch, is positioning the new copy‑trading tool as a way to “bring the alpha” generated on Hyperliquid to its user base. CEO Stephan Lutz framed the move as a full‑circle moment for the exchange: “We’ve essentially created a bridge that lets our traders tap into the leading PerpDEX’s insights without leaving our platform.”
The integration may serve several strategic purposes:
- User Retention and Acquisition – By offering a unique, on‑chain‑derived service, BitMEX differentiates itself from other CEXs that rely solely on in‑house market‑making.
- Risk Mitigation for Retail Traders – Copy‑trading can lower the entry barrier for less‑experienced participants, allowing them to follow proven strategies while still benefiting from BitMEX’s risk controls.
- Competitive Response – Smaller exchanges have recently taken aggressive steps to retain liquidity (e.g., Bitfinex’s fee‑waiver on spot and derivatives markets). BitMEX’s new feature can be seen as a proactive counter‑measure to the expanding DeFi competition.
Market Conditions
The launch arrives amid a volatile crypto environment. Bitcoin recently slipped to levels not seen since April 2025, and broader market sentiment has been pressured by a tech‑stock sell‑off. In such a setting, traders often seek higher‑return strategies, which may increase interest in copy‑trading solutions that promise exposure to top‑performing perp positions.
Industry Reaction
MetaMask’s integration of Hyperliquid earlier this year—enabling wallet users to trade perpetual futures directly—underscores the momentum behind DeFi perpetuals. The addition of a CEX‑based copy‑trading layer further blurs the line between centralized and decentralized trading services.
Key Takeaways
- Hybrid Offering: BitMEX now lets custodial traders copy the activity of leading Hyperliquid users, merging CEX usability with DEX strategy insights.
- Risk Controls Retained: Subscriptions include familiar stop‑loss and take‑profit parameters, mitigating some of the risks associated with on‑chain trading.
- Strategic Positioning: The feature reinforces BitMEX’s legacy as a perpetual‑swap innovator while acknowledging the rising relevance of DeFi derivatives.
- Market Signals: High volumes on Hyperliquid point to growing trader confidence in decentralized perpetual markets, prompting centralized platforms to adapt.
- Potential Adoption Curve: Success will hinge on the quality of replicated traders, user education around copy‑trading risks, and BitMEX’s ability to maintain competitive execution speeds and liquidity.
Outlook
If the integration proves seamless and the copied strategies deliver consistent performance, BitMEX could set a precedent for other centralized exchanges seeking to capture DeFi-derived alpha. Conversely, the model’s reliance on the continued dominance of Hyperliquid means that any shift in DEX market share could affect the attractiveness of the service. Observers will be watching both the uptake among BitMEX users and the broader reaction from the DeFi community over the coming weeks.
Source: https://thedefiant.io/news/cefi/bitmex-launches-hyperliquid-copy-trading
