British cryptocurrency exchange CoinfloorEx plans to enter the futures market for bitcoin. According to Reuters, the sale of bitcoin contracts will begin in April.
Unlike competitors, Coinfloor intends to offer “physical settlement” futures contracts, meaning the actual transfer of cryptocurrency assets to a buyer, the expiry of the term of the contract. Note that futures contracts for bitcoin offered by the CME and the Cboe, traded for cash, the cryptocurrency is not actually transferred to the owner of the contract at the expiration of his term.
According to co-founder of the exchange Mark lamb (Mark Lamb), the emergence of a new product is partly due to the increasing demand of the consumers of the exchange.
“When you talk with liquidity providers, they all say the same thing: they would prefer futures contracts involving the physical transfer of assets, that allow them to hedge their risk on the exchanges,” explained mark lamb.
Coinfloor is the fifth company offering futures contracts on bitcoin. Similar agreements are already selling CME Group, Cboe, Bitmex and CryptoFacilities. The American CME and the Cboe, as well as CryptoFacilities from UK offer contracts that provided cash.
When the positive dynamics of adaptation exchanges unambiguous assessment futures bitcoin, however, no; but soon this may change. In early February, the Commission on trade commodity futures U.S. (CFTC) announced that it is developing a mechanism “strengthened review process” cryptocurrency futures contracts. In addition, us senators requested information about future plans CFTC oversight for these products, noting that taxpayers must be protected from “fraud, manipulation and abuse in the markets of futures and options”.
We will remind, earlier it became known that the blockchain startup ConsenSys together with the trueEx platform develops the underlying reference index Ethereum, which most likely will lead to the creation of futures contracts on Ethereum.
In addition, support for Litecoin and Bitcoin Cash on the platform of the Gemini exchange will allow the creation of futures contracts based on these currencies on the exchange Cboe.