Cryptocurrency derivatives have been the centre of attraction in the recent past. Cryptocurrency derivatives, including cryptocurrency futures, cryptocurrency CFDs, cryptocurrency options and ETFs) have been under the meticulous scanner of the renowned global regulators, such as, US SEC, CFTC and UK’s Financial Conduct Authority (FCA).
The New York Stock Exchange (NYSE), the Intercontinental Exchange (ICE) announced back in August 2018, the launch of its own platform for Bitcoin futures contracts trading in the name of Bakkt. This news may have provided a little stimulus to the cryptocurrency market.
Another renowned operator in the UK, the unit of the British cryptocurrency exchange Coinfloor, CoinfloorEX has announced the trading facility of Bitcoin futures for the physical delivery on the Asian market. This implies that traders are now facilitated by the contracts to bid for a specific quantities of a commodity at a specified price with delivery set at a predetermined time in the future.
Mark Lamb, who’s going to be the CEO of the newly established venture based in Hong Kong has divulged the news in an interview with Bloomberg yesterday.
“Crypto derivatives could become an order of magnitude larger than spot markets and the main thing that’s holding back that growth is the lack of physical delivery,” said Lamb. “Volumes are reduced because of a problem of trust when it comes to cash-settled trades,” he added in the interview.
The key intricacies of the newly introduced bitcoin derivatives:
- Physical delivery of bitcoin at settlement enables trader to grow their Crypto balances to benefit from long-term appreciation of the asset.
- No cash price settlement risk - receive or deliver the actual physical asset, hence there is nothing to manipulate at settlement.
- Safer cash flow hedging: serving the needs of commercial cryptocurrency users and suppliers (i.e. Miners).
- Capitalise on market movements by converting your cryptocurrency balances to Fiat when required through the CoinfloorEX spot exchange.
Currency Strength Index: FxWirePro's hourly BTC spot index is flashing at 147 (which is bullish), while hourly USD spot index was at -61 (bearish) at 10:36 GMT.
For more details on the index, please refer below weblink: http://www.fxwirepro.com/currencyindex