The Commodity Futures Trading Commission (CFTC) has approved LedgerX’s request to be able to offer contracts on bitcoin futures. The collateral of these contracts is real bitcoin so that is good news. The rate reacted Tuesday night with a price increase of more than ten percent!
Perhaps at LedgerX you think of the latest Bluetooth wallet from Ledger and we understand that confusion. But this is a completely different company, LedgerX is a trading platform.
We are approved to open up #bitcoin derivatives trading to retail investors! Official Order of Designation by the United States of America @CFTC https://t.co/2cxQDCKwla
– LedgerX (@ledgerx) June 25, 2019
Payment in bitcoin
The CFTC already reported on Tuesday that it had approved LedgerX’s application for a DCM license (designated contract market). LedgerX is only the second company that gets permission to offer bitcoin futures, which is also based on real bitcoin. There are also bitcoin futures where there is speculation on the price, but no bitcoin is purchased to conclude the contracts.
Cboe and CME also offer bitcoin futures, but if the contract ends positively, the buyer receives their gains in dollars. LedgerX pays out in bitcoin, because there is also speculation on the price of bitcoin.
Incidentally, this is not only good news for LedgerX and institutional parties, but also private customers can compete.
Chou is enthusiastic
Juthica Chou of LedgerX: “We have no doubt that we will be the first, we want to be the ruling party when it comes to bitcoin futures. We think we are better positioned and we want to be there to serve customers of all sizes. In the end, the products are not as economically different from what we already offer … but we are addressing a wider market with this. “
Customers have long been looking forward to the bitcoin futures of LedgerX:
“We have a fairly extensive waiting list and we are working on it until we feel comfortable,” said Chou.
Competition is watching
LedgerX can expect a lot of competition quickly, think of Intercontinental Exchange’s Bakkt, Seed CX and ErisX. They all intend to offer the same.
Bakkt recently announced that their platform can be tested in July. However, they have not set a fixed date yet, but it is expected that this will be good for the price. With Seed CX and ErisX it is also not clear when they will come up with a working platform.