London-based UK Crypto Exchange to offer Bitcoin futures contracts already starting next month in a response the heightened appetite for such products from the UK residents. In fact, CoinfloorEX plans to offer physically settled futures contracts.
15 March, AtoZForex – One of the UK cryptocurrency exchange has announced that it is planning to enter Bitcoin futures market next month. The London-based exchange that was established in 2013, CoinfloorEX, has informed the public about its intentions to launch Bitcoin futures contracts on its platform.
UK Crypto Exchange to Offer Bitcoin Futures
It is known that CoinfloorEX is looking into joining a number of other firms that offer such products to their customers. One of the noteworthy facts is that CoinfloorEX plans to offer physically settled futures contracts, which implies that when the contract is set to expire, the actual asset being traded will be delivered. The Bitcoin futures contracts that are offered by the CBOE and CME in the US are cash settled, in contrast.
The initiative from CoinfloorEX emerged as a response to the demand from some of the exchange’s customers. According to the co-founder of Coinfloor, Mark Lamb:
“When you talk to the liquidity providers, they all say the same thing, which is they want a physically delivered futures contract so they can hedge their exposure across exchanges.”
Bitcoin Futures Controversial Topic
As a matter of fact, Coinfloor is now the fifth company to launch Bitcoin futures contracts in the world. Other organizations that are already offering an opportunity to buy such product include Bitmex, CryptoFacilities, CME Group and the CBOE. CryptoFacilities also follows the approach of US CME and CBOE and offers cash-settled contracts.
However, some of the cryptocurrency experts see Bitcoin futures as a controversial topic. In relation to this, the US Commodity Futures Trading Commission has announced that it plans to work on a “heightened review process” for further futures contracts.
Likewise, a number of US officials have requested further data about the CFTC’s regulation of such products. The authorities have stressed that taxpayers need to have protection from “fraud, manipulation and abusive practices in the futures and options markets.”
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