CoinFLEX plans to debut bodily-settled Bitcoin futures to the Asian market starting in February 2019. The platform is a consortium with individuals similar to Roger Ver (Bitcoin.com CEO), B2C2, Trading Technologies, and Alameda Research amongst others.
Bitcoin Futures Trading on CoinFLEX
According to Bloomberg, CoinFLEX plans to supply futures contracts for Bitcoin, Bitcoin Cash, and Ethereum. Like Bakkt (owned by Intercontinental Exchange), CoinFLEX’s choices are bodily-backed contracts.
According to CoinFLEX CEO, Mark Lamb, settling futures contracts in the underlying cryptocurrency asset improves belief. Speaking to Bloomberg on the prospects of cryptocurrency futures buying and selling, Lamb mentioned:
Crypto derivatives might grow to be an order of magnitude bigger than spot markets and the primary factor that’s holding again that development is the dearth of bodily supply. Volumes are decreased due to an issue of belief when it comes to money-settled trades.
For Lamb, there’s nice potential for growth throughout the cryptocurrency futures market. According to the CoinFLEX CEO, the crypto futures area ought to have the ability to develop to 20 instances the dimensions of the spot buying and selling market as is the case for different asset lessons. Presently, each markets deal with roughly the identical quantity of day by day transactions.
One distinctive element of the CoinFLEX providing is that contracts will commerce towards Tether (USDT), the preferred stablecoin, which is pegged towards the U.S. greenback. Apart from Tether, CoinFLEX additionally plans to launch a contract that can commerce reverse Circle’s USD Coin; one other stablecoin.
At the expiration of the contracts, merchants who maintain lengthy positions will obtain Bitcoin, Ethereum, or Bitcoin Cash whereas merchants who maintain quick positions will obtain USDT relying on the efficiency of the contract.
Offshore Incorporation to Avoid Stricter Regulations
Despite providing bodily delivered Bitcoin futures, CoinFLEX is not going to come into direct competitors with a platform like Bakkt. The motive for it is because it’s integrated offshore, permitting the platform to supply its product to a extra world market apart from extremely regulated markets just like the U.S. and the U.Okay.