CFTC approves LedgerX for crypto futures
The blockchain company beats Bakkt to the punch
It has finally arrived – the day that many cryptocurrency fans have been waiting for. There has been a long-held belief that the introduction of Bitcoin futures trading products would help stimulate the crypto space and attract institutional investors in droves, but there hasn’t been any real progress on the front for more than a year. Now, the Commodity Futures Trading Commission (CFTC) has actually given the green light to LedgerX to launch Bitcoin futures that will be physically traded.
The CBOE and CME exchanges started offering crypto futures in December 2017, but they are settled in fiat. LedgerX’s products will be the first to be settled in their native currency. LedgerX officials add in an announcement about the launch, “Five years and three licenses from the U.S. federal government later, we are officially licensed to offer our physically-settled BTC spot and derivatives trading to all investors.”
In approving the futures, the CFTC stated, “DCMs are most like traditional futures exchanges, which may allow access to their facilities by all types of traders, including retail customers.” It said that the platforms “may list for trading futures or option contracts based on any underlying commodity, index or instrument.”
The futures will be available for both retail and institutional investors, giving them large possibilities for traders. This was by design, as LedgerX CEO Paul Chou explains, “…[Bitcoin] was not designed for just institutions. It’s designed for people, yet an open secret is that the vast majority of bitcoin trading happens over the counter (OTC) in markets of which most people are unaware or can’t access in any practical way.”
The official launch date hasn’t been announced, but Chou expects them to be rolled at within the next couple of weeks.