Coinfloor’s CoinFLEX To Launch Physically-Delivered Bitcoin Futures
U.K.-based crypto exchange Coinfloor will soon launch the trading of a physically-delivered Bitcoin Futures for users in the Asian market.
The product will be offered on CoinFLEX, a trading unit carved off the London-based exchange. The new platform has reportedly been reorganized in readiness for the launch of the BTC futures contracts.
Coinfloor’s co-founder, and now the new chief executive of the offshoot exchange, Mark Lamb, revealed that the crypto exchange would offer the contracts, in what could turn out to be taking on behemoths in the crypto industry like ICE’s Bakkt and Eris Exchange LLC.
In an interview published by Bloomberg on January 7, the executive says that the company was ready in this new venture.
“The market needs physical delivery in order for derivatives to become an order of magnitude larger than they are today.”
Coin Futures and Lending Exchange, or in short CoinFLEX, is a rebranded platform that has reportedly attracted the support of some of the most prominent actors in the crypto industry.
According to reports, the venture will be owned by a consortium that includes Roger Ver, one of the earliest bitcoin entrepreneurs. Ver is now a fervent supporter of Bitcoin Cash (BCH), a coin that endured turbulence in the last two months of 2018 following a contentious hard fork.
Other investors in the consortium include Mike Komaransky, Trading Technologies, Dragonfly Capital Partners, B2C2, Global Advisors, and Amber AI among others.
The new platform, which will be located in Hong Kong. As stated in the interview, CoinFLEX will offer futures contracts for three cryptocurrencies in Bitcoin (BTC), Bitcoin Cash (BCH) and Ethereum (ETH) and will target Asian retail investors.
The contracts will be available beginning February this year, with a leverage of up to 20 times.
Lamb reiterated that the product is a physically delivered futures contract and that CoinFLEX customers will receive the underlying cryptocurrency as opposed to cash in a cash-settled futures contract.
CoinFLEX has also hinted at plans to have a trading contract where investors bet on the stablecoin Tether (USDT) against USD Coin (USDC). USDC is a stable coin that has the support of crypto companies Coinbase and Circle.
Coinfloor’s new venture is taking on a market that will soon have the Intercontinental Exchange (ICE), the owner of the New York Stock Exchange (NYSE) as a major player. ICE announced that it would launch physically delivered bitcoin futures on its new platform Bakkt.
Bakkt recently closed an impressive $182.5 million first funding round and reportedly recruited three top-ranking employees as it prepares for the launch of its Bitcoin (USD) futures contracts.
The Bakkt launch has been postponed twice, but the company has expressed optimism that its product will launch in the first few weeks of 2019. At the moment, the only hurdle in its way is an approval from the U.S. Commodity Futures Trading Commission (CFTC).
Disclaimer: This is not investment advice. Cryptocurrencies are highly volatile assets and are very risky investments. Do your research and consult an investment professional before investing. Never invest more than you can afford to lose. Never borrow money to invest in cryptocurrencies.