LedgerX, a BTC derivatives provider, was approved by the Commodity Futures Trading Commission (CFTC) to deliver futures contracts that will be settled in Bitcoin.
LedgerX applied to CFTC for a Designated Contract Market (DCM) license which allows the company to offer futures contracts to its customers. It is worth mentioning that LedgerX is one of the first companies to deliver futures that are settled in Bitcoin.
At the moment, there is a great interest in the market from several major players to provide futures, such as Bakkt that is working to offer these contracts to institutional investors.
Until recently, interested parties in the financial market had the possibility to acquire Bitcoin futures contracts that were listed by CME and CBOE from Chicago. However, these futures were settled at the end of the contract in fiat. The main differentiator now stands in the fact that the futures contracts from LedgerX – and in the following period Bakkt – will be actually settled in Bitcoin.
If Bakkt – the company founded by International Exchange – has become the most highly anticipated brand to enter the market of Bitcoin futures contracts for institutional investors, LedgerX will be able to offer its products and services to retail customers too.
From a larger perspective, Bitcoin futures contracts have been strongly connected with the arrival of institutional investors in the cryptocurrency market where their powerful financial resources can indeed take the blockchain industry at a whole new level. It is very well known that institutional investors have the necessary finances to act as the main drive behind the supply and demand ratio that exists in securities markets all over the world.
So, if until now the crypto market was open only to retail investors, the upcoming entrance of major investment companies should affect in a positive manner the prices of digital assets, especially the Bitcoin price.
Talking about Bitcoin, everybody could witness the recent growth enjoyed by Bitcoin throughout the months of April, May and June and we can easily find a connection with the recent approval of companies offering futures contracts.
At the moment, the industry is looking forward to Bakkt’s entrance into the market as International Exchange – its parent company – is the same corporation that founded the New York Stock Exchange leading everybody to believe that investors from the traditional financial sphere will slowly move some of the assets into the cryptocurrency market.