Exciting news in the crypto world! CoinFLEX, a Hong Kong-based firm and a spin-off of Coinfloor – the UK’s oldest Bitcoin exchange – is making waves. They’re on the brink of launching physically-backed futures for Bitcoin, Ethereum, and Bitcoin Cash. And guess what? This innovative venture has the backing of Bitcoin Cash advocate Roger Ver and Trading Technologies International, a Chicago-based fintech company.
CoinFLEX has just unveiled its website, and it’s all geared up to offer Asian clients up to 20x leverage on these three major cryptocurrencies. It’s a big deal for crypto traders who have been eagerly awaiting physically-backed futures – these are futures settled with the actual cryptocurrency instead of cash.
Mark Lamb, the CEO of CoinFLEX, recently shared with Bloomberg the significance of these physically-settled futures. He emphasized how this approach combats market manipulation and ties futures prices more closely to the underlying assets. It’s not just about speculation; it’s a strategic tool for commercial hedging and market-making.
Meanwhile, the Intercontinental Exchange, the parent company of the New York Stock Exchange, is also eyeing this market. They’re waiting for the green light from the Commodity Futures Trading Commission to launch Bakkt, their own platform for physically-backed crypto futures in the US.
After a couple of missed launch dates, Bakkt is still on track to launch ‘later this year’, pending regulatory approval. This initiative is being heralded as their ‘moonshot bet’ on Bitcoin and the broader crypto market.