Hong Kong-based crypto exchange Coin Futures along with a renowned crypto Exchange ‘CoinFLEX’ has recently revealed that it’ll be providing futures market contracts for cryptocurrencies to Asian investors, starting from this Feb. 2019.
CoinFLEX was launched earlier in Feb 2018 as CoinfloorEX, a division of Coinfloor, the oldest British Bitcoin [BTC] exchange. However, the venture has currently revealed that it’ll be separating from its former parent company.
The new platform is co-owned by its parent company Coinfloor and well-known investors like Bitcoin Cash’s Evangelist Roger Ver, Mike Komaransky, B2C2, Dragonfly Capital, Trading Technologies, along with several others.
CoinFLEX Exchange Futures Contracts
CoinFLEX is expected to initiate future contracts for Bitcoin [BTC], Ethereum [ETH] as well as Bitcoin Cash [BCH], with a leverage probability of up to 20x [20 times].
Physically delivered futures contracts, like those offered by CoinFLEX, are advantageous as their values are tied to the underlying assets. This simply implies that upon expiration, contract owners would be offered the asset, as opposed to payment in standard currencies. The benefits of CoinFLEX’s chosen compensation mechanism is that it breeds transparency as this method can’t be manipulated. This transparency is certain to engender additional confidence within the crypto market that also suffers from regulative uncertainties.
While speaking in an ‘interview‘ with Bloomberg, CoinFLEX chief executive officer namely ‘Mark Lamb’ stated that:
“Crypto derivatives might become an order of magnitude larger than spot markets and the major issue that’s holding back that growth is the lack of physical delivery. Volumes are reduced attributable to a drag of trust once it involves cash-settled trades.”
Lamb further stated that the daily trading volume within the market is pegged at $3 Mln, but there’s additional potential for growth.
2019 – A Year Of Bitcoin Future Market
With its future offerings, CoinFLEX joins the likes of ‘Bakkt‘, the Chicago-based crypto exchange backed by intercontinental Exchange, the parent company of the NYSE. Bakkt, declared that it might be launching its own physically delivered futures contracts for investors within the U.S.
Bakkt successfully raised over $182 Mln on New Year’s Eve from the association of renowned capitalists as it edges nearer to the launch of its Bitcoin Futures exchange within the Q1 of 2019.