Cryptocurrency options platform LedgerX will launch Etherium contracts26.09.2018
The American company LedgerX, which became the first platform approved by the US Commodity Futures Trading Commission (CFTC) for issuing cryptocurrency derivatives, is preparing to launch similar products based on Etherium. This is reported by The Block, with reference to sources familiar with the situation above.
According to the sources of the publication, LedgerX waits for the "green light" from the regulators, after which it will present its new product. Officially, the company has not yet confirmed this information, but the source reports that, if approved, the launch of new products may take place after the CFTC meeting on October 5.
LedgerX released derivatives of digital currencies in October 2017, two months ahead of the crypto-currency futures contracts CBOE and CME. Currently, the firm offers one-day futures and options through which traders can buy the right to purchase or sell the asset at a fixed price in the future. LedgerX will launch similar products for the air.
As the newspaper informs, such options will allow traders to "short" the price of an ETH, because of which the so-called two-sided market will appear. According to experts, the emergence of derivatives based on Etherium can lead to a short-term drop in the price of the cryptocurrency. For example, some studies have demonstrated a link between the current decline in the digital asset market and the launch of the first regulated Bitcoin futures.
At the same time, new products can positively affect pricing, due to which the interest to cryptocurrencies of large financial companies will increase as to the class of assets in general, and to Etherium in particular. In addition, the help of options, professional investors and miners will hedge profits and reduce the risks associated with price volatility.
Earlier it became known that the operator of the Chicago Stock Exchange of options CBOE Global Markets told its market makers that by the end of the year he plans to launch futures on Etherium too. At the same time, CME Group CEO, Terry Duffy (Terry Duffy) said that they don’t plan to add Etherium futures on their trading platforms.